140. See infra Chapter III.C. 141. Although this section reports a variety of data that profess to determine "market share," this Report makes no effort to specify a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, LOCAL REAL ESTATE MARKET COMPETITORS: EVIDENCE 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 metropolitan locations. For instance, within the Washington, DC cosmopolitan location, there is little or no competition amongst buyers, sellers, and realty agents 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., Elder Economic Expert, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Real Estate Market, Real Estate Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], readily available at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Comment https://www.westlifenews.com/classifieds/housing/rent/vacation/wesley-financial-group-l/ad_cae71a1d-614e-524a-942c-84a77163f90d.html 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY ORGANIZATION SUMMARY 4 (Dec - how to get into commercial real estate. 2006), readily available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to choose a real estate agent for selling. pdf. 151. NAR, Public Comment 208, at 6 (" In a few markets, some companies may have a bigger than usual 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 Real Estate 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 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 Portion Brokerage Commissions and Realty 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 described infra, however, this is not necessarily the case with regard to the entry of new business designs in 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 realty brokerage service."). The ability of novice entrants to draw in clients relative to more knowledgeable 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 Remark 92, at 1. 161. NAR, Public Comment 208, at 5 (" An agent can get a broker's license, generally after having stayed in business for numerous years, and passing a broker's license examination. The exact requirements vary by state.").
One author has actually explained the service that brokers provide as not merely a completed match of buyer and seller, but rather "a finished transaction at some level of service supplied to the parties included." Geoffrey K. Turnbull, Real Estate Brokers, Nonprice Competitors and the Housing Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers supply these services "provides the margin for nonprice competitors amongst brokers." Id. 164. As gone over in Chapter I of this Report, rebates are a meaningful part of price competition in between brokers in states that do not forbid refunds. Anti-rebate laws are discussed 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 regularly have commission modes at either six or seven percent. These are the 'regular' modes for essentially all markets, no matter how they may vary from one another, and nationwide an extremely high percentage of realty brokerage transactions took place 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 specific kind of energetic competition 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 back, things actually have actually not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a research study which was finished and released in 1983.
PROPERTY RES. 187, 187 (2001) (" A number of research studies have actually argued that the harmony of the commission rate across various homes and areas is an indicator of collusive behavior."); Richard J. Buttimer, Jr., View website 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 linear function of the prices which if there is not collusion among brokers, there ought to be, at the really 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 requirement, the property brokerage market is significantly less competitive than it ought to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive result would surely imply that typical charges would be lower than they are today which 'the 6% (or 7%) commission' would be https://web.nashvillechamber.com/Real-Estate-Agents-and-Brokers/Wesley-Financial-Group,-LLC-21149?utm_source=GoogleSearch&gclid=Cj0KCQjw3s_4BRDPARIsAJsyoLMcbna5tFxdH9g--Y2UQliNiFGTrCXy6AAE6S9tZYYYuTspQQTsWakaAptfEALw_wcB not likely to stay as the modal fee."); John C.
8, 2005) (noting "a fairly extensive view that brokerage is not a competitive market" based a number of understandings, consisting of: (1) extreme commission rates that are "sticky downward" even as technology decreases brokers' costs; (2) commission rates are greater in the United States than in lots of other industrialized nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws restricting competitors; (4) NAR's successful lobbying of Congress to forbid banks from going into the real estate brokerage service; and (5) NAR-imposed restrictions on discount rate and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Impact of Modifications in the Airline Ticket Circulation Market (July 2003) (going over how Web distribution lowered transaction costs in the sale of airline tickets), readily available at http://www. gao.gov/ new - what are cc&rs in real estate. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Security Details Needed on Broker's Web Sites (May 2000) (going over how Internet brokerages charge far less commission per trade on securities), offered 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 Comment 10, at 3 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 research study analyzing commission rates in the United States and several other countries concluded that U.S.