140. See infra Chapter III.C. 141. Although this section reports a range of stats that claim 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 PROPERTY MARKET COMPETITORS: EVIDENCE AND INSIGHT FROM AN ANALYSIS OF 12 RESIDENT MARKETS 3 (2005 ), available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind existence of "micro- markets" within metropolitan locations. For example, within the Washington, DC city, there is little or no competitors amongst purchasers, sellers, and property 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 Economic Expert, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Real Estate Market, Property Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], available 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 BUSINESS INTRODUCTION 4 (Dec - what are the requirements to be a real estate appraiser. 2006), available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to get a real estate license in ohio. pdf. 151. NAR, Public Remark 208, at 6 (" In a couple of markets, some firms may have a larger than typical 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 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 grounds, 406 F. 3d 969 (8th Cir. 2005). 154. Shiawee X. Yang & Abdullah Yavas, Bigger 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 fiscal year 1991 from the multiple listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Portion Brokerage Commissions and Realty 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, however, this is not always the case with regard to the entry of brand-new organization models in the property brokerage industry. See infra Chapter IV. 157. Perriello, follow this link Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's reasonably complimentary entry into the occupation and into the realty brokerage service."). The capability of amateur entrants to draw in customers relative to more Take a look at the site here skilled agents was not gone over at the Workshop and, also, is not resolved 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 obtain a broker's license, normally after having been in company for numerous years, and passing a broker's license examination. The exact requirements differ by state.").
One author has explained the service that brokers supply as not merely a completed match of purchaser and seller, however rather "a finished deal at some level of service provided to the parties involved." Geoffrey K. Turnbull, Property Brokers, Nonprice Competitors and the Real Estate Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers supply these services "provides the margin for nonprice competitors amongst brokers." Id. 164. As talked about in Chapter I of this Report, rebates are a significant element of rate competition in 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 STAFF REPORT, supra note 9, at 64. See likewise id. at 55 (" [W] e found local markets to consistently have commission modes at either 6 or seven percent. These are the 'typical' modes for essentially all markets, no matter how they may differ from one another, and nationwide a really high portion of property brokerage deals occurred at a commission rate of one or the other.
The degree of rate harmony we found clearly is inconsistent with a market identified by the specific sort of energetic competition typical 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 back, things truly have actually not altered that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a study which was completed and published in 1983.
GENUINE ESTATE RES. 187, 187 (2001) (" A variety of research studies have actually argued that the harmony of the commission rate across different residential or commercial properties and regions 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 presented is the near-uniformity of commission rates in a provided market. A common argument is that the effort needed to sell a home is not a direct function of the sales price which if there is not collusion among brokers, there should be, at the very least, variation in commission rates throughout house rate varieties within a given 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 significantly less competitive than it needs to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive outcome would definitely suggest that typical costs would be lower than they are today and that 'the 6% (or 7%) commission' would be unlikely to remain as the modal fee."); John C.
8, 2005) (keeping in mind "a fairly extensive view that brokerage is not a competitive market" based numerous understandings, consisting of: (1) excessive commission rates that are "sticky downward" even as technology lowers brokers' costs; (2) commission rates are higher in the United States than in numerous other industrialized nations; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws restricting competition; (4) NAR's effective lobbying of Congress to forbid banks from getting in the property brokerage business; and (5) NAR-imposed constraints on discount and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Effect of Modifications in the Airline Ticket Circulation Industry (July 2003) (talking about how Internet distribution decreased transaction costs in the sale of airline company tickets), offered at http://www. gao.gov/ brand-new - what is a real estate appraiser. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Protection Info Needed on Broker's Website (May 2000) (going over 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 Remark 10, at 3. 170. American Bankers Association, Public Remark 10, at 3 (remark). 171. Id. at 1. 172. Id. at 4. A 2002 research study examining commission rates in the United States and a number of other nations concluded that U.S.