140. See infra Chapter III.C. 141. Although this area reports a range of data that claim to measure "market share," this Report makes no attempt to specify a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT PROPERTY MARKET COMPETITORS: 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 city, there is little or no competitors amongst 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 Financial Expert, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Property Industry, Realty Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], 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 COMPANY INTRODUCTION 4 (Dec - what is the difference between a real estate agent and a broker. 2006), offered at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how do real estate agents get paid. pdf. 151. NAR, Public Remark 208, at 6 (" In a couple of markets, some firms may have a larger 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 (sixth 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, 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 fiscal year 1991 https://www.trustpilot.com/review/timesharecancellations.com from the multiple listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Click to find out more Portion Brokerage Commissions and Realty Market Efficiency," 17 JOURNAL OF THE AMERICAN REALTY 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, however, this is not necessarily the case with respect to the entry of brand-new organization designs in the property brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively totally free entry into the profession and into the realty brokerage organization."). The ability of novice entrants to bring in clients relative to more experienced representatives 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 Comment 92, at 1. 161. NAR, Public Remark 208, at 5 (" A representative can obtain a broker's license, normally after having stayed in business for a number of years, and passing a broker's license exam. The exact requirements vary by state.").
One author has actually explained 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 included." Geoffrey K. Turnbull, Realty Brokers, Nonprice Competitors and the Real Estate Market, 24 REALTY ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers provide these services "offers the margin for nonprice competition 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 discussed in more information in Chapter IV of this Report.
1983 FTC STAFF 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 'normal' modes for practically all markets, no matter how they may vary from one another, and nationwide an extremely high percentage of property brokerage transactions occurred at a commission rate of one or the other.
The degree of rate harmony we found clearly is inconsistent with a market characterized by the specific kind 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 twenty years ago, things truly have actually not changed that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a research study which was finished and published in 1983.
PROPERTY RES. 187, 187 (2001) (" A number Visit this website of research studies have argued that the uniformity of the commission rate across different homes and regions is a sign of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Real Estate Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion between brokers through the [MLS] The primary proof provided is the near-uniformity of commission rates in an offered market. A typical argument is that the effort needed to offer a house is not a direct function of the sales rate which if there is not collusion amongst brokers, there must be, at the really least, variation in commission rates across house price varieties within a provided market.").
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See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any standard, the realty brokerage market is substantially less competitive than it should be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would certainly mean that average charges would be lower than they are today which 'the 6% (or 7%) commission' would be unlikely to remain as the modal fee."); John C.
8, 2005) (noting "a fairly prevalent view that brokerage is not a competitive market" based numerous perceptions, consisting of: (1) excessive commission rates that are "sticky downward" even as technology decreases brokers' costs; (2) commission rates are higher in the United States than in lots of other developed nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws limiting competitors; (4) NAR's successful lobbying of Congress to forbid banks from entering the property brokerage company; and (5) NAR-imposed limitations on discount rate and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Effect of Modifications in the Airline Company Ticket Distribution Market (July 2003) (discussing how Web circulation reduced deal expenses in the sale of airline company tickets), offered 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 Defense Info Needed on Broker's Website (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 (comment). 171. Id. at 1. 172. Id. at 4. A 2002 research study examining commission rates in the United States and numerous other countries concluded that U.S.