140. See infra Chapter III.C. 141. Although this area reports a range of stats that claim to determine "market share," this Report makes no attempt to define a pertinent antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, LOCAL REALTY MARKET COMPETITION: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), readily available at http://www.
nsf/Pages/Sawyer05? OpenDocument (noting existence of "micro- markets" within cosmopolitan areas. For example, within the Washington, DC city, there is little or no competitors among buyers, 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, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Realty Industry, Realty Brokerage Industry: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], offered at http://www. ftc.gov/ opp/workshops/comprealestate/ yun. pdf. 146. Id.
Id. 148. NAR, Public Comment 208, at 7 (remark). 149. Id. 150. REALOGY, REALOGY SERVICE INTRODUCTION 4 (Dec - how to take real estate photos. 2006), available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what does a real estate agent do. pdf. 151. NAR, Public Remark 208, at 6 (" In a couple of markets, some firms might have a bigger than typical 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 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 marketplace, 10 J.
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23, 27-28 (1995 ). The authors used a sample of 388 home sales in fiscal year 1991 from the numerous 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 REAL ESTATE 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, nevertheless, this is not always the case with respect to the entry of brand-new business designs in the realty brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively complimentary entry into the occupation and into the real estate brokerage company."). The ability of newbie entrants to attract customers relative to more experienced representatives was not discussed at the Workshop and, likewise, 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 Remark 208, at 5 (" A representative can acquire a broker's license, generally after having been in business for a number of years, and passing a broker's license test. The exact requirements differ by state.").
One author has actually described the service that brokers supply as not merely a finished match of buyer and seller, but rather "a finished transaction at some level of service offered to the celebrations involved." Geoffrey K. Turnbull, Realty Brokers, Nonprice Competitors and the Real Estate Market, 24 REALTY ECONOMICS 293, 295 (1996 ).
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Id. The level to which brokers supply these services "provides the margin for nonprice competition amongst brokers." Id. 164. As gone over in Chapter I of this Report, rebates are a meaningful part of rate competition between brokers in states that do not restrict rebates. Anti-rebate laws are discussed in more detail in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See wyndham timeshare for sale likewise id. at 55 (" [W] e found local markets to consistently have commission modes at either six or seven percent. These are the 'typical' modes for virtually all markets, despite how they may vary from one another, and nationwide an extremely high percentage of real estate brokerage transactions occurred at a commission rate of one or the other.
The degree of rate uniformity we found plainly is irregular with a market identified by the specific sort of vigorous competitors common in lots of other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you go back to the FTC report from more than 20 years ago, things actually have actually not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a research study which was completed and released in 1983.
GENUINE ESTATE RES. 187, 187 (2001) (" A variety of research studies have argued that the uniformity of the commission rate throughout various residential or commercial properties and areas is a sign of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Realty Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion between brokers through the [MLS] The primary proof provided is the https://www.dnb.com/business-directory/company-profiles.wesley_financial_group_llc.fb2ce1229199bc0be95c25a39ff05309.html near-uniformity of commission rates in a given market. A typical argument is that the effort needed to offer a home is not a direct function of the list prices and that if there is not collusion amongst brokers, there must be, at the very least, variation in commission rates throughout home price varieties 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 synthetically high."); White, supra note 47, at 2 (" [A] more competitive result would certainly mean that average fees would be lower than they are today and that 'the 6% (or 7%) commission' would be not likely to stay as the modal fee."); John C.
8, 2005) (keeping in mind "a fairly extensive view that brokerage is not a competitive market" based a number of perceptions, consisting of: (1) extreme commission rates that are "sticky down" even as innovation lowers brokers' costs; (2) commission rates are higher in the United States than in numerous other developed countries; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws restricting competition; (4) NAR's effective lobbying of Congress to prohibit banks from getting in the realty brokerage organization; and (5) NAR-imposed limitations on discount rate and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Impact of Modifications in the Airline Ticket Circulation Market timeshare broker services (July 2003) (talking about how Internet distribution lowered transaction costs in the sale of airline tickets), offered at http://www. gao.gov/ brand-new - what does a real estate broker do. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Security Information Needed on Broker's Website (May 2000) (discussing how Internet 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 Remark 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 numerous other countries concluded that U.S.