140. See infra Chapter III.C. 141. Although this section reports a range of statistics that claim to measure "market share," this Report makes no effort to specify a pertinent antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, LOCAL PROPERTY MARKET COMPETITION: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), offered at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind presence of "micro- markets" within city areas. For example, within the Washington, DC city, there is little or no competition amongst purchasers, sellers, and property agents throughout 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., Elder Economist, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Realty Industry, Realty Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], 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 OVERVIEW 4 (Dec - what is noi in real estate. 2006), available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to become a real estate agent in va. pdf. 151. NAR, Public Remark 208, at 6 (" In a couple of markets, some firms may have a bigger than usual market share, but market shares are known to change measurably from one year to the next.").
Re/Max Int' l, Inc. v. Realty One, Inc., 173 F. 3d 995, 1003 (6th Cir. 1999). 153. Mid-America Property 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 Much Better: Brokerage and Time on the marketplace, 10 J.
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23, 27-28 (1995 ). The authors used 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, however, this is not always the case with respect to the entry of brand-new service models in the realty brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively totally free entry into the occupation and into the property brokerage business."). The capability of novice entrants to attract customers relative to more experienced representatives was not talked about at the Workshop and, similarly, is not resolved in this Report. 158. Yun, Tr.
159. Yun Presentation, supra note 145, at 5, bluegreen timeshare cancellation 7. 160. Daniels, Public Remark 92, at 1. 161. NAR, Public Remark 208, at 5 (" A representative can obtain a broker's license, generally after having actually stayed in business for several years, and passing a broker's license test. The exact requirements vary by state.").
One author has described the service that brokers offer as not simply a completed match of purchaser and seller, but rather "a finished deal at some level of service provided to the celebrations involved." Geoffrey K. Turnbull, Real Estate Brokers, Nonprice Competitors and the Housing Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers provide these services "supplies the margin for nonprice competitors among brokers." Id. 164. As gone over in Chapter I of this Report, rebates are a meaningful element of rate competitors between brokers in states that do not forbid rebates. Anti-rebate laws are talked about in more detail in Chapter IV of this Report.
1983 FTC STAFF 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 seven percent. These are the 'typical' modes for practically all markets, despite how they might differ from one another, and nationwide an extremely high percentage of realty brokerage transactions took place at a commission rate of one or the other.
The degree of rate uniformity we discovered clearly is inconsistent with a market identified by the specific sort of vigorous competitors common in many other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than twenty years earlier, things actually have actually not altered that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a study which was finished and published in 1983.
REAL ESTATE RES. 187, 187 (2001) (" A number of studies have actually argued that the uniformity of the commission rate throughout various residential or commercial properties and regions is an indication of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Property Listing Agreements, 16 J. REAL ESTATE FIN. & ECON.
some collusion in between brokers through the [MLS] The main proof Visit this link presented is the near-uniformity of commission rates in an offered market. A typical argument is that the effort required to sell a house is not a linear function of the list prices which if there is not collusion amongst brokers, there ought to be, at least, variation in commission rates across 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 realty brokerage market is substantially less competitive than it needs to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive outcome would certainly suggest that typical charges would be lower than they are today which 'the 6% (or 7%) commission' would be not likely to remain as the modal charge."); John C.
8, 2005) (keeping in mind "a fairly extensive view that brokerage is not a competitive industry" based a number of understandings, consisting of: (1) extreme commission rates that are "sticky downward" even as technology lowers brokers' costs; (2) commission rates are higher in the United States than in numerous other developed nations; (3) lobbying efforts by NAR and state Real estate agent associations in favor of state laws restricting Click for more competition; (4) NAR's successful lobbying of Congress to forbid banks from getting in the genuine estate brokerage company; and (5) NAR-imposed restrictions on discount and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Effect of Changes in the Airline Company Ticket Circulation Industry (July 2003) (talking about how Internet circulation decreased deal costs in the sale of airline company tickets), readily available at http://www. gao.gov/ new - what is escheat in real estate. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Security Info Needed on Broker's Web Websites (May 2000) (discussing 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 Comment 10, at 3 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 study evaluating commission rates in the United States and a number of other nations concluded that U.S.