140. See infra Chapter III.C. 141. Although this area reports a range of statistics that profess to measure "market share," this Report makes no attempt to define a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT REAL ESTATE MARKET COMPETITION: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), offered at http://www.
nsf/Pages/Sawyer05? OpenDocument (noting existence of "micro- markets" within urban areas. For example, within the Washington, DC city, there is little or no competition amongst purchasers, 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 Economic Expert, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competitors Policy and the Realty Market, Realty Brokerage Market: 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 become a real estate agent in illinois. 2006), offered at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how long does it take to get real estate license. pdf. 151. NAR, Public Comment 208, at 6 (" In a few markets, some companies might have a bigger than typical market share, but market timeshare in florida 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 Real Estate 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 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 multiple listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Percentage Brokerage Commissions and Realty Market Performance," 17 JOURNAL OF THE AMERICAN PROPERTY AND URBAN ECONOMICS ASSOCIATION 422, 428-29 (1989 ).
See id. at 427-28. 156. 1983 FTC STAFF REPORT, supra note 9, at 102. As explained infra, however, this is not always the case with respect to the entry of new company designs in the property brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See also Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's relatively free entry into the profession and into the realty brokerage organization."). The ability of amateur entrants to draw in customers relative to more knowledgeable representatives was not discussed at the Workshop and, also, is not addressed 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 acquire a broker's license, generally after having stayed in business for several years, and passing a broker's license examination. The exact requirements differ by state.").
One author has described 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 included." Geoffrey K. Turnbull, Real Estate Brokers, Nonprice Competition and the Housing Market, 24 REALTY ECONOMICS 293, 295 (1996 ).
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Id. The level to which brokers provide these vacation village timeshare services "provides the margin for nonprice competitors among brokers." Id. 164. As talked about in Chapter I of this Report, rebates are a significant part of rate competitors between brokers in states that do not restrict refunds. Anti-rebate laws are gone over in more information 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 6 or seven percent. These are the 'normal' modes for essentially all markets, despite how they may differ from one another, and nationwide a very high portion of real estate brokerage deals happened at a commission rate of one or the other.
The degree of rate harmony we found plainly is inconsistent with a market characterized by the specific type of vigorous competitors typical in numerous other markets."). 166. See, e. https://www.chronicle-tribune.com/classifieds/community/announcements/notice/services-wesley-financial-group-llc---timeshare-cancellation-experts/ad_cff082dc-f02b-5e02-839b-7ce6195732b5.html g., Hsieh, Tr. at 261 (" [I] f you go back to the FTC report from more than twenty years back, things really have not changed that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a study which was completed and released in 1983.
PROPERTY RES. 187, 187 (2001) (" A variety of research studies have actually argued that the harmony of the commission rate across different properties and areas is an indicator of collusive behavior."); 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 primary evidence presented is the near-uniformity of commission rates in an offered market. A common argument is that the effort required to offer a home is not a direct function of the list prices and that if there is not collusion amongst brokers, there should be, at the extremely least, variation in commission rates throughout home cost ranges within a provided market.").
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See, e. g., American Bankers Association, Public Remark 10, at 1 (cover letter) (" [b] y any standard, the real estate brokerage market is significantly less competitive than it must be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive outcome would undoubtedly mean that typical costs would be lower than they are today which 'the 6% (or 7%) commission' would be not likely to remain as the modal cost."); John C.
8, 2005) (noting "a relatively widespread view that brokerage is not a competitive industry" based a number of perceptions, consisting of: (1) extreme commission rates that are "sticky downward" even as technology lowers brokers' expenses; (2) commission rates are greater in the United States than in many other developed countries; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws restricting competitors; (4) NAR's successful lobbying of Congress to restrict banks from getting in the property brokerage service; and (5) NAR-imposed constraints on discount and Web brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Impact of Modifications in the Airline Company Ticket Circulation Industry (July 2003) (going over how Web distribution lowered transaction expenses in the sale of airline company tickets), offered at http://www. gao.gov/ new - what can i do with a real estate license. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Security Info Needed on Broker's Website (May 2000) (talking about how Web 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 Remark 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 examining commission rates in the United States and several other nations concluded that U.S.