140. See infra Chapter III.C. 141. Although this area reports a range of data that claim to determine "market share," this Report makes no attempt to define an appropriate antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT REAL ESTATE MARKET COMPETITORS: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), readily available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind existence of "micro- markets" within cities. For example, within the Washington, DC city, there is little or no competitors 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 Citizen Financial Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Real Estate Industry, Real Estate Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], readily available at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Comment 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY SERVICE SUMMARY 4 (Dec - how to buy commercial real estate. 2006), available at http://library. business- 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 firms may have a larger than usual market share, but market shares are understood to change measurably from one year to the next.").
Re/Max Int' l, Inc. v. Real Estate One, Inc., 173 F. 3d 995, 1003 (6th Cir. 1999). 153. Mid-America Real Estate Co. v. Iowa Real Estate Co., No. 4:04- CV-10175, 2004 WL 1280895, at * 8- * 9 & n. 5 (S.D. Iowa 2004), rev 'd on other grounds, 406 F. 3d 969 (8th Cir. 2005). 154. Shiawee X. Yang & Abdullah Yavas, Bigger is Not Better: Brokerage and Time on the marketplace, 10 J.
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23, 27-28 (1995 ). The authors utilized a sample of 388 house sales in calendar year 1991 from the several listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Portion Brokerage Commissions and Real Estate Market 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 described infra, however, this is not always the case with regard to the entry of brand-new company designs in the property brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's reasonably free entry into the occupation and into the realty brokerage service."). The capability of amateur entrants to bring in customers relative to more experienced agents was not talked about at the Workshop and, likewise, is not addressed in this Report. 158. Yun, Tr.
159. Yun Discussion, supra note 145, at 5, 7. 160. Daniels, Public Comment 92, at 1. 161. NAR, Public Comment 208, at 5 (" An agent can get a broker's license, typically after having actually stayed in business for numerous years, and passing a broker's license test. The specific requirements vary by state.").
One author has actually explained the service that brokers provide as not simply a completed match of buyer and seller, but rather "a finished transaction at some level of service offered https://www.newsbreak.com/news/2056971864782/franklin-firm-wesley-financial-launches-insurance-agency to the celebrations involved." Geoffrey K. Turnbull, Realty Brokers, Nonprice Competition and the Housing Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The extent to which brokers supply these services "provides the margin for nonprice competition among brokers." Id. 164. As discussed in Chapter I of this Report, rebates are a significant part of rate competitors between brokers in states that do not forbid rebates. Anti-rebate laws are discussed in more information 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 regularly have commission modes at either 6 or seven percent. These are the 'regular' modes for practically all markets, despite how they might vary from one another, and nationwide an extremely high portion of realty brokerage deals happened at a commission rate of one or the other.
The degree of rate uniformity we discovered plainly is irregular with a market identified by the particular kind of energetic competition common in lots of other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than 20 years ago, things actually have not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a study which was completed and published in 1983.
PROPERTY RES. 187, 187 (2001) (" A number of research studies have actually argued that the uniformity of the commission rate across various properties and regions is an indication of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Real Estate Listing Agreements, 16 J. REALTY FIN. & ECON.
some collusion between brokers through the [MLS] The main proof provided is the near-uniformity of commission rates in an offered market. A common argument is that the effort needed to offer a home is not a linear function of the sales rate and that if there is not collusion amongst brokers, there should be, at the really least, variation in commission rates throughout house 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 real estate brokerage market is significantly less competitive than it needs to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive outcome would undoubtedly indicate that average fees would be lower than they are today which las vegas timeshare deals 'the 6% (or 7%) commission' would be not likely to remain as the modal charge."); John C.
8, 2005) (noting "a fairly prevalent view that brokerage is not a competitive industry" based a number of understandings, consisting of: (1) excessive commission rates that are "sticky down" even as technology decreases brokers' what is a timeshare unit costs; (2) commission rates are higher in the United States than in many other developed nations; (3) lobbying efforts by NAR and state Real estate agent associations in favor of state laws limiting competition; (4) NAR's successful lobbying of Congress to prohibit banks from entering the property brokerage service; 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: Effect of Modifications in the Airline Company Ticket Distribution Industry (July 2003) (discussing how Internet circulation decreased transaction costs in the sale of airline tickets), readily available at http://www. gao.gov/ new - how to become a real estate agent in illinois. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Security Details Needed on Broker's Web Websites (May 2000) (talking about how Web brokerages charge far less commission per trade on securities), readily available 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 Comment 10, at 3 (comment). 171. Id. at 1. 172. Id. at 4. A 2002 study examining commission rates in the United States and numerous other countries concluded that U.S.