140. See infra Chapter III.C. 141. Although this area reports a range of data that claim 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, LOCAL PROPERTY MARKET COMPETITION: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), available at http://www.
nsf/Pages/Sawyer05? OpenDocument (noting existence of "micro- markets" within cosmopolitan areas. For instance, within the Washington, DC city, there is little or no competitors amongst purchasers, sellers, and realty 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., Senior Financial Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Real Estate Industry, Property Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], http://www.wesleytimesharegroup.com/wesley-financial-group-reviews/ readily available at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Remark 208, at 7 (comment). 149. Id. 150. REALOGY, REALOGY ORGANIZATION SUMMARY 4 (Dec - how to become a real estate developer. 2006), readily available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what percentage do real estate agents get. pdf. 151. NAR, Public Remark 208, at 6 (" In a couple of markets, some companies might have a larger than typical market share, but market shares are known 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 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 grounds, 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 home sales in fiscal year 1991 from the multiple 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 STAFF REPORT, supra note 9, at 102. As explained infra, however, this is not necessarily the case with respect to the entry of new organization designs in the realty brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's reasonably complimentary entry into the occupation and into the real estate brokerage business."). The ability of newbie entrants to bring in clients relative to more experienced agents was not discussed at the Workshop and, similarly, is not addressed 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 acquire a broker's license, typically after having stayed in business for several years, and passing a broker's license examination. The precise requirements differ by state.").
One author has actually explained the service that brokers supply as not simply a completed match of buyer and seller, however rather "a completed transaction at some level of service supplied to the parties 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 extent to which brokers provide these services "supplies the margin for nonprice competitors amongst brokers." Id. 164. As gone over in Chapter I of this Report, refunds are a significant part of rate competition between brokers in states that do not restrict 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 also id. at 55 (" [W] e found local markets to consistently have commission modes at either 6 or seven percent. These are the 'regular' modes for practically all markets, no matter how they might vary from one another, and nationwide a very high percentage of genuine estate 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 defined by the specific type of energetic competitors typical in numerous other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than 20 years earlier, things actually have actually not altered that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a study which was completed and released in 1983.
REALTY RES. 187, 187 (2001) (" A variety of studies have actually argued that the harmony of the commission rate across various residential or commercial properties and regions is an indication of collusive behavior."); 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 primary proof provided is the near-uniformity of commission rates in a provided market. A typical argument is that the effort required to offer a house is not a linear function of the list prices and that if there is not collusion amongst brokers, there ought to be, at least, variation in commission rates throughout 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 standard, the real estate brokerage market is substantially less competitive than it ought to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive result would surely indicate that typical fees would be lower than they are today which 'the 6% (or 7%) commission' would be unlikely to remain as the modal charge."); John C.
8, 2005) (keeping in mind "a fairly widespread view that brokerage is not a competitive industry" based several perceptions, including: (1) excessive commission rates that are "sticky downward" even as innovation decreases brokers' expenses; (2) commission rates are greater in the United States than in many other developed nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state here laws limiting competition; (4) NAR's effective lobbying of Congress to forbid banks from getting in the property brokerage service; and (5) NAR-imposed limitations on discount and Web brokers' access to the MLS).
See, e. https://web.nashvillechamber.com/Real-Estate-Agents-and-Brokers/Wesley-Financial-Group,-LLC-21149 g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Effect of Changes in the Airline Company Ticket Circulation Market (July 2003) (talking about how Web circulation reduced transaction costs in the sale of airline tickets), readily available at http://www. gao.gov/ brand-new - how to become a real estate agent in va. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Defense Details Needed on Broker's Web Websites (May 2000) (discussing how Web 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 (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.