140. See infra Chapter III.C. 141. Although this section reports a variety of statistics that claim to measure "market share," this Report makes no effort to define a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, LOCAL PROPERTY MARKET COMPETITION: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), readily available at http://www.
nsf/Pages/Sawyer05? OpenDocument (noting existence of "micro- markets" within cities. For instance, within the Washington, DC city, there is little or no competitors 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 Economist, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Real Estate Market, Property Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], 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 OVERVIEW 4 (Dec - what is escheat in real estate. 2006), readily available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to become a real estate developer. pdf. 151. NAR, Public Remark 208, at 6 (" In a few markets, some companies Additional reading might have a bigger than usual market share, but market shares are understood to alter 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 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, Bigger is Not Much Better: Brokerage and Time on the marketplace, 10 J.
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23, 27-28 (1995 ). The authors used a sample of 388 house 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 Property Market Performance," 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 described infra, however, this is not necessarily the case with respect to the entry of brand-new service 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 reasonably complimentary entry into the occupation and into the property brokerage business."). The capability of novice entrants to attract clients relative to more skilled representatives was not gone over at the Workshop and, also, is not resolved in this Report. 158. Yun, Tr.
159. Yun Presentation, supra note 145, at 5, 7. 160. Daniels, Public Remark 92, at 1. 161. NAR, Public Comment 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 examination. The specific requirements differ by state.").
One author has actually explained the service that brokers offer as not merely a finished match of purchaser and seller, but rather "a finished transaction at some level of service provided to the parties included." Geoffrey K. Turnbull, Property Brokers, Nonprice Competition and the Housing Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The level to which brokers supply these services "supplies the margin for nonprice competition among brokers." Id. 164. As gone over in Chapter I of this Report, rebates are a meaningful component of cost competitors between brokers in states that do not restrict 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 also id. at 55 (" [W] e discovered regional markets to regularly have commission modes at either six or seven percent. These are the 'typical' modes for practically all markets, despite how they may differ from one another, and nationwide an extremely high percentage of realty brokerage transactions happened at a commission rate of one or the other.
The degree of rate uniformity we found plainly is inconsistent with a market defined by the particular kind of vigorous 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 20 years earlier, things truly have actually not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a study which was completed and released in 1983.
PROPERTY RES. 187, 187 (2001) (" A number of research studies have actually argued that the uniformity of the commission rate throughout various properties and areas is an indicator of collusive habits."); 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 evidence 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 direct function of the prices and that if there is not collusion among brokers, there should be, at the minimum, variation in commission rates across home rate varieties within a provided 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 substantially less competitive than it ought to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive outcome would certainly suggest that average fees would be lower than they are today and that 'the 6% (or 7%) commission' would be unlikely to stay as the modal charge."); John C.
8, 2005) (keeping in mind "a fairly prevalent view that brokerage is not a competitive industry" based numerous understandings, consisting of: (1) extreme commission rates that are "sticky down" even as technology decreases brokers' costs; (2) commission rates are greater in the United States than in numerous other developed countries; (3) lobbying efforts by NAR and state Real estate agent associations in favor of state laws limiting competitors; (4) NAR's successful lobbying of Congress to prohibit banks from going into the genuine estate brokerage organization; and (5) NAR-imposed restrictions on discount rate and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Effect of Changes in the Airline Ticket Distribution Market (July 2003) (discussing how Web distribution decreased deal expenses in the sale http://www.helptostudy.com/wesley-financial-group-scholarship-program/ of airline tickets), offered at http://www. gao.gov/ brand-new - what is the difference between a real estate agent and a broker. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Security Details Needed on Broker's Website (May 2000) (discussing 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 Remark 10, at 3 (comment). 171. Id. at 1. 172. Id. at 4. A 2002 study evaluating commission rates in Hop over to this website the United States and numerous other countries concluded that U.S.