140. See infra Chapter III.C. 141. Although this section reports a range of stats that claim to measure "market share," this Report makes no attempt to define an appropriate antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT PROPERTY MARKET COMPETITORS: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), readily 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 competition amongst buyers, sellers, and property 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., Elder Financial Expert, National Association of Realtors, Presentation at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Property Industry, Real Estate Brokerage Industry: 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 (remark). 149. Id. 150. REALOGY, REALOGY SERVICE INTRODUCTION 4 (Dec - how to get leads in real estate. 2006), available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to buy commercial real estate. pdf. 151. NAR, Public Comment 208, at 6 (" In a couple of markets, some firms might have a larger than usual market share, however market shares are understood to change 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 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 Much Better: Brokerage and Time on the Market, 10 J.
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23, 27-28 (1995 ). The authors used a sample of 388 home sales in calendar year 1991 from the multiple listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Portion Brokerage Commissions and Real Estate 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, nevertheless, this is not always the case with regard to the entry of new business designs in the genuine estate brokerage industry. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's fairly free entry into the profession and into the realty brokerage organization."). The ability of novice entrants to draw in clients relative to more knowledgeable representatives was not talked about 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 Remark 92, at 1. 161. NAR, Public Remark 208, at 5 (" An agent can get a broker's license, normally after having stayed in business for numerous years, and passing a broker's license test. The exact requirements differ by state.").
One author has actually explained the service that brokers provide as not simply a finished match of purchaser and seller, but rather "a completed deal at some level of service offered to the celebrations involved." Geoffrey K. Turnbull, Real Estate Brokers, Nonprice Competition and the Real Estate Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The extent to which brokers provide these services "provides the margin for nonprice competitors amongst brokers." Id. 164. As gone over in Chapter I of this Report, rebates are a significant element of cost competition in between brokers in states that do not restrict refunds. Anti-rebate laws are talked about in more detail in Chapter IV of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See likewise id. at 55 (" [W] e discovered local markets to regularly have commission modes at either 6 or 7 percent. These are the 'normal' modes for virtually all https://www.mytimeshareexitreviews.com/wesley-financial-group-review-cost-fees-ratings/ markets, no matter how they might differ from one another, and nationwide an extremely high portion of property brokerage deals happened at a commission rate of one or the other.
The degree of rate harmony we discovered clearly is inconsistent with a market defined by the specific sort of energetic competition 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 twenty years ago, things actually have actually not changed that much."); Click here Bourgoin, Public Remark 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 different properties and regions is an indicator of collusive habits."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Real Estate Listing Agreements, 16 J. PROPERTY FIN. & ECON.
some collusion in between brokers through the [MLS] The main proof presented is the near-uniformity of commission rates in a given market. A typical argument is that the effort required to sell a home is not a linear function of the list prices which if there is not collusion among brokers, there need to be, at least, variation in commission rates throughout house cost 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 requirement, the property brokerage market is considerably less competitive than it must be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would undoubtedly imply that average fees would be lower than they are today which 'the 6% (or 7%) commission' would be unlikely to remain as the modal charge."); John C.
8, 2005) (keeping in mind "a relatively extensive view that brokerage is not a competitive market" based numerous perceptions, consisting of: (1) excessive commission rates that are "sticky downward" even as innovation reduces brokers' expenses; (2) commission rates are greater in the United States than in many other developed nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws limiting competitors; (4) NAR's effective lobbying of Congress to prohibit banks from entering the property brokerage organization; and (5) NAR-imposed limitations on discount and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline timeshare disney world Company Ticketing: Impact of Changes in the Airline Ticket Circulation Market (July 2003) (discussing how Internet circulation lowered deal costs in the sale of airline company tickets), readily available at http://www. gao.gov/ new - how to become a commercial real estate agent. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Security Information Needed on Broker's Website (May 2000) (talking about how Web 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 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 analyzing commission rates in the United States and a number of other nations concluded that U.S.