140. See infra Chapter III.C. 141. Although this section reports a variety of statistics that claim to determine "market share," this Report makes no effort to define a pertinent 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 presence of "micro- markets" within cities. For example, within the Washington, DC city, there is little or no competition among buyers, sellers, and genuine estate 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 Economic Expert, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Find more information Workshop: Competitors Policy and the Realty Market, Real Estate Brokerage Market: 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 Remark 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY BUSINESS SUMMARY 4 (Dec - how much do real estate agents make per sale. 2006), available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what can i do with a real estate license. pdf. 151. NAR, Public Comment 208, at 6 (" In a couple of markets, some firms may have a bigger than normal market share, however market shares are understood to alter 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 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 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 numerous listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Percentage Brokerage Commissions and Property Market Efficiency," 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, nevertheless, this is not always the case with respect to the entry of 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 fairly free entry into the profession and into the realty brokerage company."). The ability of newbie entrants to draw in customers relative to more experienced agents was not talked about at the Workshop and, also, is not attended to in this Report. 158. Yun, Tr.
159. Yun Presentation, supra note 145, at 5, 7. 160. Daniels, Public Remark 92, at palm springs timeshare cancellation 1. 161. NAR, Public Comment 208, at 5 (" A representative can acquire a broker's license, normally after having actually been in organization for numerous years, and passing a broker's license examination. The exact requirements vary by state.").
One author has actually explained the service that brokers offer as not merely a finished match of purchaser and seller, however rather "a completed transaction at some level of service provided to the celebrations involved." Geoffrey K. Turnbull, Realty Brokers, Nonprice Competition and the Housing Market, 24 REAL ESTATE ECONOMICS 293, 295 (1996 ).
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Id. The level to which brokers provide these services "offers the margin for nonprice competitors amongst brokers." Id. 164. As gone over in Chapter I of this Report, refunds are a significant component of rate competitors between brokers in states that do not forbid refunds. Anti-rebate laws are talked about in more information in Chapter IV of this Report.
1983 FTC STAFF REPORT, supra note 9, at 64. See also id. at 55 (" [W] e found regional markets to regularly have commission modes at either six or 7 percent. These are the 'typical' modes for virtually all markets, regardless of how they might vary from one another, and nationwide a really high percentage of property 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 characterized by the specific sort of energetic competitors common in many other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you go back to the FTC report from more than twenty years earlier, things actually have not altered that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a research study which was finished and published in 1983.
PROPERTY RES. 187, 187 (2001) (" A number of studies have argued that the uniformity of the commission rate throughout various homes and regions is an indication of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Realty Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion in between brokers through the [MLS] The primary proof presented is the near-uniformity of commission rates in a given market. A common argument is that the effort needed to offer a home is not a linear function of the prices which if there is not collusion among brokers, there ought to be, at least, variation in commission rates across home price varieties within an offered market.").
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See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any requirement, the realty brokerage market is significantly less competitive than it must be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive outcome would certainly mean that typical fees would https://www.chronicle-tribune.com/classifieds/community/announcements/notice/services-wesley-financial-group-llc---timeshare-cancellation-experts/ad_cff082dc-f02b-5e02-839b-7ce6195732b5.html be lower than they are today and that 'the 6% (or 7%) commission' would be not likely to stay as the modal charge."); John C.
8, 2005) (noting "a relatively extensive view that brokerage is not a competitive industry" based numerous understandings, including: (1) extreme commission rates that are "sticky downward" even as technology reduces brokers' costs; (2) commission rates are greater in the United States than in numerous other industrialized countries; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws restricting competitors; (4) NAR's successful lobbying of Congress to forbid banks from going into the property brokerage service; and (5) NAR-imposed constraints on discount and Web 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 Web distribution reduced transaction expenses in the sale of airline tickets), offered at http://www. gao.gov/ new - what is a cma in real estate. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Defense Information Needed on Broker's Web Websites (May 2000) (going over 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 Comment 10, at 3. 170. American Bankers Association, Public Remark 10, at 3 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 study examining commission rates in the United States and a number of other nations concluded that U.S.