140. See infra Chapter III.C. 141. Although this section reports a variety of statistics that purport to measure "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 COMPETITORS: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), 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 competitors among buyers, sellers, and real estate 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 Economist, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Real Estate Industry, Realty Brokerage Industry: 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 Comment 208, at 7 (comment). 149. Id. 150. REALOGY, REALOGY ORGANIZATION SUMMARY 4 (Dec - what is earnest money in real estate. 2006), available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what is reo in real estate. pdf. 151. NAR, Public Comment 208, at 6 (" In a few markets, some firms may have a larger than typical market share, but market shares are known 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 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 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 REALTY AND URBAN ECONOMICS ASSOCIATION 422, 428-29 (1989 ).
See id. at 427-28. 156. 1983 FTC PERSONNEL REPORT, supra note 9, at 102. As explained infra, nevertheless, this is not always the case with respect to the entry of new organization designs in Click here to find out more the real estate brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's fairly totally free entry into the occupation and into the real estate brokerage service."). The Find more info capability of novice entrants to draw in clients relative to more experienced representatives was not gone over 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 (" A representative can get a broker's license, usually after having 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 offer as not merely a finished match of buyer and seller, but rather "a finished transaction at some level of service offered to the parties included." Geoffrey K. Turnbull, Property Brokers, Nonprice Competitors and the Real Estate Market, 24 REALTY ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers supply these services "offers the margin for nonprice competition among brokers." Id. 164. As talked about in Chapter I of this Report, rebates are a meaningful component of price competitors between brokers in states that do not restrict rebates. Anti-rebate laws are gone over 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 'normal' modes for practically all markets, despite how they may vary from one another, and nationwide an extremely high portion of genuine estate brokerage deals happened at a commission rate of one or the other.
The degree of rate uniformity we discovered plainly is inconsistent with a market defined by the particular kind of energetic competitors typical in lots of other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than twenty years ago, things actually have not altered that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a study which was finished and released in 1983.
REAL ESTATE RES. 187, 187 (2001) (" A number of research studies have actually argued that the harmony of the commission rate across various residential or commercial properties and areas is an indicator of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Property Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion in between brokers through the [MLS] The main proof provided is the near-uniformity of commission rates in a provided market. A typical argument is that the effort required to offer a home is not a linear function of the prices which if there is not collusion amongst brokers, there must be, at the minimum, variation in commission orlando timeshare rent rates throughout home rate ranges 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 significantly less competitive than it should be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would surely imply that typical fees would be lower than they are today and that 'the 6% (or 7%) commission' would be unlikely to stay as the modal cost."); John C.
8, 2005) (noting "a fairly extensive view that brokerage is not a competitive market" based a number of understandings, consisting of: (1) excessive commission rates that are "sticky downward" even as technology minimizes brokers' costs; (2) commission rates are greater 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 effective lobbying of Congress to forbid banks from entering the realty brokerage company; and (5) NAR-imposed limitations on discount and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Effect of Changes in the Airline Company Ticket Distribution Industry (July 2003) (talking about how Web distribution reduced deal expenses in the sale of airline tickets), available at http://www. gao.gov/ new - how to take real estate photos. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Defense Information Needed on Broker's Web Websites (May 2000) (discussing how Internet 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 analyzing commission rates in the United States and several other countries concluded that U.S.