140. See infra Chapter III.C. 141. Although this section reports a variety of stats that profess to determine "market share," this Report makes no effort to specify an appropriate antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT REALTY MARKET COMPETITION: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), available at http://www.
nsf/Pages/Sawyer05? OpenDocument (noting presence of "micro- markets" within cities. For instance, within the Washington, DC cosmopolitan location, there is little or no competition amongst purchasers, sellers, and realty representatives 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 Economic Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Real Estate Market, Realty Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], offered 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 COMPANY OVERVIEW 4 (Dec - what is a cma in real estate. 2006), available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what is rvm in real estate. pdf. 151. NAR, Public Comment 208, at 6 (" In a couple of markets, some companies may have a larger than typical market share, however 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 (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 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 numerous listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Percentage Brokerage Commissions and Realty Market Performance," 17 JOURNAL OF THE AMERICAN PROPERTY AND URBAN ECONOMICS ASSOCIATION 422, 428-29 (1989 ).
See id. at 427-28. 156. 1983 FTC STAFF REPORT, supra note 9, at 102. As described infra, nevertheless, this is not necessarily the case with respect to the entry of brand-new organization models in the genuine estate brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's reasonably complimentary entry into the profession and into the realty brokerage business."). The capability of novice entrants to attract customers relative to more experienced agents was not discussed at the Workshop and, similarly, is not resolved 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 obtain a broker's license, usually after having actually been in service for several years, and passing a broker's license exam. The specific requirements differ by state.").
One author has described the service that brokers supply as not simply a finished match of purchaser and seller, however rather "a finished deal at some level of service provided to the celebrations involved." Geoffrey K. Turnbull, Property Brokers, Nonprice Competition and the Real Estate Market, 24 REAL ESTATE ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers supply these services "provides the margin for nonprice competition amongst brokers." Id. 164. As gone over in Chapter I of this Report, rebates are a significant part of price competition in between brokers in states that do not forbid rebates. Anti-rebate laws are gone over in more information in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See likewise id. at 55 (" [W] e discovered local markets to regularly have commission modes at either 6 or 7 percent. These are the 'regular' modes for essentially all markets, despite how they might vary from one another, and nationwide a very high portion of genuine estate brokerage deals happened at a commission rate of one or the other.
The degree of rate harmony we found plainly is irregular with a market identified by the particular type of vigorous competition common in numerous other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you go back to the FTC report from more than twenty years ago, things really have not altered that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a study which was completed and published in 1983.
REAL ESTATE RES. 187, 187 (2001) (" A number of research studies have argued that the harmony of the commission rate across different properties and regions is an indication of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Realty Listing Agreements, 16 J. REAL ESTATE FIN. & ECON.
some collusion between brokers through the [MLS] The primary proof 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 list prices which if there is not collusion amongst brokers, there should be, at the really least, variation in commission rates across home rate varieties within a given market.").
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See, e. g., American Bankers Association, Public Comment 10, at 1 (cover letter) (" [b] y any requirement, the real estate brokerage market is significantly less competitive than it ought to be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would certainly suggest that average fees would be lower than they are today which 'the 6% (or 7%) commission' would be not likely to stay as the modal charge."); John C.
8, 2005) (keeping in mind "a relatively prevalent view that brokerage is not a competitive market" based numerous perceptions, consisting of: (1) excessive commission rates miami timeshare cancellation that are "sticky downward" even as technology minimizes brokers' costs; (2) commission rates are higher in the United States than in many other industrialized nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws limiting competition; (4) NAR's effective lobbying of Congress to prohibit banks from going diamond resorts timeshare reviews into the real estate brokerage business; and (5) NAR-imposed limitations on discount rate and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Effect of Changes in the Airline Ticket Circulation Market (July 2003) (talking about how Web distribution reduced transaction expenses in the sale of airline company tickets), readily available at http://www. gao.gov/ brand-new - how to get a real estate license in ca. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Security Info Needed on Broker's Web Sites https://www.globalbankingandfinance.com/category/news/wesley-financial-group-diversifies-with-launch-of-wesley-mutual/ (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 Comment 10, at 3. 170. American Bankers Association, Public Remark 10, at 3 (comment). 171. Id. at 1. 172. Id. at 4. A 2002 research study analyzing commission rates in the United States and a number of other countries concluded that U.S.