140. See infra Chapter III.C. 141. Although this area reports a range of data that claim to measure "market share," this Report makes no attempt to define a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT PROPERTY MARKET COMPETITION: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 timeshare freedom group RESIDENT MARKETS 3 (2005 ), readily available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind existence of "micro- markets" within cities. For instance, within the Washington, DC city, there is little or no competition among purchasers, sellers, and property agents across the micro-markets of Montgomery County, MD, Fairfax County, VA, and southwest Washington, DC). 143. Yun, Tr. at 220. 144.
145. Lawrence Yun, Ph. D., Senior Financial Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Property Market, Property Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], available at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Remark 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY COMPANY INTRODUCTION 4 (Dec - what does arv mean in real estate. 2006), offered at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to start real estate investing. pdf. 151. NAR, Public Remark 208, at 6 (" In a few markets, some companies might have a larger than normal market share, but market shares are known to change measurably from one year to the next.").
Re/Max Int' l, Inc. v. Real Estate One, Inc., 173 F. 3d 995, 1003 (sixth Cir. 1999). 153. Mid-America Property Co. v. Iowa Realty Co., No. 4:04- CV-10175, 2004 WL 1280895, at * 8- * 9 & n. 5 (S.D. Iowa 2004), rev 'd on other premises, 406 F. 3d 969 (8th Cir. 2005). 154. Shiawee X. Yang & Abdullah Yavas, Larger is Not Much Better: Brokerage and Time on the Market, 10 J.
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23, 27-28 (1995 ). The authors utilized a sample of 388 home sales in calendar year 1991 from the multiple listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Percentage Brokerage Commissions and Real Estate Market https://web.nashvillechamber.com/Real-Estate-Agents-and-Brokers/Wesley-Financial-Group,-LLC-21149 Performance," 17 JOURNAL OF THE AMERICAN PROPERTY AND URBAN ECONOMICS ASSOCIATION 422, 428-29 (1989 ).
See id. at 427-28. 156. 1983 FTC PERSONNEL REPORT, supra note 9, at 102. As explained infra, however, this is not always the case with regard to the entry of brand-new organization models in the property brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively free entry into the occupation and into the property brokerage business."). The capability of beginner entrants to attract clients relative to more knowledgeable agents was not gone over at the Workshop and, similarly, is not attended to in this Report. 158. Yun, Tr.
159. Yun Presentation, supra note 145, at 5, 7. 160. Daniels, Public Comment 92, at 1. 161. NAR, Public Comment 208, at 5 (" A representative can acquire a broker's license, generally after having been in company for several years, and passing a broker's license test. The exact requirements differ by state.").
One author has described the service that brokers offer as not merely a finished match of buyer and seller, however rather "a finished transaction at some level of service supplied to the parties involved." Geoffrey K. Turnbull, Realty Brokers, Nonprice Competitors and the Real Estate Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers supply these services "provides the margin for nonprice competition among brokers." Id. 164. As discussed in Chapter I of this Report, refunds are a meaningful element of price competitors in between brokers in states that do not restrict refunds. Anti-rebate laws are discussed in more detail in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See also id. at 55 (" [W] e discovered regional markets to consistently have commission modes at either six or 7 percent. These are the 'regular' modes for practically all markets, despite how they might differ from one another, and nationwide an extremely high percentage of realty brokerage deals happened at a commission rate of one or the other.
The degree of rate harmony we found clearly is irregular with a market identified by the specific type of vigorous competitors common in lots of other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you go back to the FTC report from more than twenty years back, things actually have actually not changed that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a research study which was finished and published in 1983.
REAL ESTATE RES. 187, 187 (2001) (" A number of research studies have actually argued that the harmony of the commission rate across various properties and areas is an indication of collusive Click here to find out more behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Property Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion between brokers through the [MLS] The main proof presented is the near-uniformity of commission rates in an offered market. A common argument is that the effort required to sell a home is not a linear function of the list prices and that if there is not collusion amongst brokers, there need to be, at the minimum, variation in commission rates throughout home cost varieties within an offered market.").
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See, e. g., American Bankers Association, Public Comment 10, at 1 (cover letter) (" [b] y any standard, the genuine estate brokerage market is considerably less competitive than it needs to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive result would definitely mean that average fees would be lower than they are today and that 'the 6% (or 7%) commission' would be unlikely to remain as the modal charge."); John C.
8, 2005) (keeping in mind "a fairly prevalent view that brokerage is not a competitive market" based numerous understandings, consisting of: (1) excessive commission rates that are "sticky down" even as technology decreases brokers' expenses; (2) commission rates are higher in the United States than in numerous other developed countries; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws restricting competitors; (4) NAR's effective lobbying of Congress to restrict banks from going into the realty brokerage organization; and (5) NAR-imposed restrictions on discount rate and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Impact of Modifications in the Airline Company Ticket Distribution Industry (July 2003) (going over how Internet distribution lowered deal expenses in the sale of airline company tickets), available at http://www. gao.gov/ new - how to get a real estate license in ohio. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Protection Information Needed on Broker's Web Sites (May 2000) (going over how Internet brokerages charge far less commission per trade on securities), offered at http://www.
items/gg00043. pdf. 169. See Hahn, Tr. at 89; American Bankers Association, Public Remark 10, at 3. 170. American Bankers Association, Public Remark 10, at 3 (comment). 171. Id. at 1. 172. Id. at 4. A 2002 study analyzing commission rates in the United States and a number of other nations concluded that U.S.