140. See infra Chapter III.C. 141. Although this area reports a variety of data that profess to determine "market share," this Report makes no attempt to specify a pertinent antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT REALTY MARKET COMPETITORS: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), offered at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind presence of "micro- markets" within cities. For instance, within the Washington, DC metropolitan location, there is little or no competitors among buyers, sellers, and property representatives 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., Senior Citizen Economic Expert, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Property Industry, Property 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 Comment 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY SERVICE SUMMARY 4 (Dec - what does mls stand for in real estate. 2006), offered at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what is a real estate novelist. pdf. 151. NAR, Public Comment 208, at 6 (" In a few markets, some companies may have a bigger than normal 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 Realty 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 Market, 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 Genuine Estate Market Performance," 17 JOURNAL OF THE AMERICAN REAL ESTATE AND URBAN ECONOMICS ASSOCIATION 422, 428-29 (1989 ).
See id. at 427-28. 156. 1983 FTC STAFF REPORT, supra note 9, at 102. As explained infra, however, this is not necessarily the case with respect to the entry of brand-new company designs in the real estate brokerage market. See cruise timeshare infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's fairly free entry into the occupation and into the genuine estate brokerage service."). The capability of beginner entrants to draw in clients relative to more knowledgeable agents was not discussed at the Workshop and, likewise, is not attended to in this Report. 158. Yun, Tr.
159. Yun Discussion, supra note 145, at 5, 7. 160. Daniels, Public Remark 92, at 1. 161. NAR, Public Comment 208, at 5 (" A representative can acquire a broker's license, typically after having actually stayed in business for a number of years, and passing a broker's license examination. The specific requirements differ by state.").
One author has described the service that brokers provide as not simply a completed match of purchaser and seller, however rather "a finished transaction at some level of service provided to the parties involved." Geoffrey K. Turnbull, Real Estate Brokers, Nonprice Competitors and the Real Estate Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The level to which brokers supply these services "supplies the margin for nonprice competitors among brokers." Id. 164. As talked about 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 talked about in more detail in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See likewise id. at 55 (" [W] e found regional markets to consistently have commission modes at either 6 or timeshare foreclosure seven percent. These are the 'regular' modes for essentially all markets, no matter how they may vary from one another, and nationwide a very high portion of realty brokerage deals occurred at a commission rate of one or the other.
The degree of rate harmony we discovered clearly is irregular with a market characterized by the specific sort of vigorous competitors typical 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 20 years earlier, things truly have not altered that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a research study which was finished and released in 1983.
REAL ESTATE RES. 187, 187 (2001) (" A variety of research studies have actually argued that the harmony of the commission rate throughout various properties and areas is an indicator of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Realty Listing Agreements, 16 J. REALTY FIN. & ECON.
some collusion in between brokers through the [MLS] The main evidence provided is the near-uniformity of commission rates in a provided market. A typical argument is that the effort required to sell a house is not a linear function of the prices which if there is not collusion amongst brokers, there should be, at least, variation in commission rates throughout house cost varieties within a provided market.").
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See, e. g., American Bankers Association, Public Comment 10, at 1 (cover letter) (" [b] y any requirement, the property brokerage market is significantly less competitive than it should be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive result would undoubtedly mean that average costs would 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 fairly prevalent view that brokerage is not a competitive market" based a number of understandings, including: (1) extreme commission rates that are "sticky down" 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 competitors; (4) NAR's successful lobbying of Congress to restrict banks from entering the realty brokerage service; and (5) NAR-imposed limitations on discount rate and Internet brokers' access to https://www.timesharecancellationadvice.com/wesley-financial-group-review/ the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Impact of Modifications in the Airline Company Ticket Circulation Market (July 2003) (talking about how Web circulation reduced transaction expenses in the sale of airline company tickets), available at http://www. gao.gov/ new - what are the requirements to be a real estate appraiser. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Security Information Needed on Broker's Website (May 2000) (talking about how Internet brokerages charge far less commission per trade on securities), 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 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 research study evaluating commission rates in the United States and several other countries concluded that U.S.