140. See infra Chapter III.C. 141. Although this section reports a variety of statistics that purport to determine "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, LOCAL REAL ESTATE 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 among buyers, sellers, and property 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., Elder Economic Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Property Industry, Property Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Discussion], offered 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 BUSINESS INTRODUCTION 4 (Dec - how to invest in real estate with little money. 2006), offered at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to become a real estate agent in illinois. pdf. 151. NAR, Public Comment 208, at 6 (" In a few markets, some firms might have a larger than normal market share, however market shares are known to change 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 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 utilized a sample of 388 home sales in calendar year 1991 from the several 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 explained infra, nevertheless, this is not always 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 also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively free entry into the occupation and into the property brokerage company."). The capability of novice entrants to attract customers relative to more skilled agents was not talked about 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 Remark 92, at 1. 161. NAR, Public Comment 208, at 5 (" A representative can obtain a broker's license, generally after having stayed in business for a number of years, and passing a broker's license examination. The precise requirements vary by state.").
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One author has actually explained the service that brokers provide as not simply a completed match of buyer and seller, but rather "a completed deal at some level of service provided to the celebrations 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 degree to which brokers provide these services "supplies the margin for nonprice competition among brokers." Id. 164. As gone over in Chapter I of this Report, rebates are a significant component of rate competitors between brokers in states that do not forbid refunds. Anti-rebate laws are discussed in more information in Chapter IV of this Report.
1983 FTC STAFF REPORT, supra note 9, at 64. See likewise id. at 55 (" [W] e discovered local markets to consistently have commission modes at either six or 7 percent. These are https://picante.today/business-wire/2019/10/08/95065/wesley-financial-group-relieves-375-consumers-of-more-than-6-7-million-in-timeshare-debt-in-september/ the 'normal' modes for virtually all markets, no matter how they may vary from one another, and nationwide a very high portion of property brokerage transactions occurred at a commission rate of one or the other.
The degree of rate uniformity we discovered plainly is inconsistent with a market characterized by the particular sort of vigorous competition common 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 back, things really have not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a study which was completed and released silver leaf timeshare in 1983.
PROPERTY RES. 187, 187 (2001) (" A variety of research studies have actually argued that the uniformity of the commission rate across different properties and regions is a sign of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Property Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion between brokers through the [MLS] The primary proof presented is the near-uniformity of commission rates in an offered market. A common argument is that the effort needed to offer a home is not a direct function of the prices and that if there is not collusion among brokers, there need to be, at the minimum, 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 property brokerage market is substantially less competitive than it must be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would certainly imply that average costs would be lower than they are today and that 'the 6% (or 7%) commission' would be unlikely to stay as the modal cost."); John C.
8, 2005) (noting "a relatively extensive view that brokerage is not a competitive market" based several perceptions, consisting of: (1) extreme commission rates that are "sticky downward" even as technology decreases brokers' expenses; (2) commission rates are higher 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 limiting competition; (4) NAR's successful lobbying of Congress to prohibit banks from entering the real estate brokerage organization; and (5) NAR-imposed restrictions on discount and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Effect of Changes in the Airline Company Ticket Circulation Market (July 2003) (going over how Internet distribution lowered transaction costs in the sale of airline company tickets), readily available at http://www. gao.gov/ brand-new - how do real estate agents make money. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Security Info Needed on Broker's Website (May 2000) (talking about 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 how to terminate a timeshare agreement Bankers Association, Public Remark 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 evaluating commission rates in the United States and a number of other countries concluded that U.S.