140. See infra Chapter III.C. 141. Although this area reports a range of data that purport to measure "market share," this Report makes no attempt to specify a pertinent antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, RESIDENT REALTY 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 city areas. For example, within the Washington, DC cosmopolitan location, there is little or no competitors amongst 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 Market, Real Estate Brokerage Industry: 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 (comment). 149. Id. 150. REALOGY, REALOGY COMPANY OVERVIEW 4 (Dec - how to be a real estate investor. 2006), readily available at http://library. business- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. how to become real estate agent. pdf. 151. NAR, Public Remark 208, at 6 (" In a couple of markets, some companies might have a bigger than normal 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 (sixth 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 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 house sales in calendar year 1991 from the numerous listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Portion Brokerage Commissions and Genuine Estate Market Performance," http://www.redrocknews.com/2020/09/23/wesley-financial-group-llc-timeshare-cancellation-experts-over-3/ 17 JOURNAL OF THE AMERICAN PROPERTY 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, however, this is not always the case with regard to the entry of brand-new service models 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 free entry https://www.bizjournals.com/nashville/c/meet-the-2020-best-places-to-work/12253/wesley-financial-group-llc.html into the occupation and into the real estate brokerage company."). The capability of amateur entrants to attract clients relative to more knowledgeable agents was not discussed at the Workshop and, also, is not dealt with 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 Comment 208, at 5 (" A representative can acquire a broker's license, normally after having stayed in business for several years, and passing a broker's license exam. The specific requirements differ by state.").
One author has actually described the service that brokers offer as not simply a finished match of purchaser and seller, however rather "a completed transaction at some level of service offered to the parties included." Geoffrey K. Turnbull, Realty Brokers, Nonprice Competition and the Real Estate Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The degree to which brokers supply these services "offers the margin for nonprice competition amongst brokers." Id. 164. As discussed in Chapter I of this Report, refunds are a significant element of cost competitors between brokers in states that do not restrict rebates. Anti-rebate laws are talked about in more detail 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 regularly have commission modes at either 6 or 7 percent. These are the 'regular' modes for virtually all markets, no matter how they might vary from one another, and nationwide a really high percentage of property brokerage deals happened at a commission rate of one or the other.
The degree of rate uniformity we discovered clearly is irregular with a market characterized by the particular kind of energetic competition common in numerous 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 truly have actually not changed that much."); Bourgoin, Public Remark 30 at 1 (" [T] he FTC did a study which was completed and published in 1983.
REALTY RES. 187, 187 (2001) (" A variety of studies have actually argued that the harmony of the commission rate across different properties and regions is an indication 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 evidence 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 linear function of the list prices and that if there is not collusion amongst brokers, there should be, at the minimum, variation in commission rates across house price 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 requirement, the real estate brokerage market is substantially less competitive than it ought to be and commissions are synthetically high."); White, supra note 47, at 2 (" [A] more competitive outcome would undoubtedly indicate that typical charges 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) (keeping in mind "a relatively extensive view that brokerage is not a competitive market" based several understandings, consisting of: (1) excessive commission rates that are "sticky down" even as technology reduces brokers' expenses; (2) commission rates are greater in the United States than in numerous other developed countries; (3) lobbying efforts by NAR and state Realtor associations in favor of state laws limiting competition; (4) NAR's successful lobbying of Congress to forbid banks from entering the property brokerage organization; and (5) NAR-imposed constraints on discount and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Company Ticketing: Impact of Changes in the Airline Ticket Distribution Industry (July 2003) (going over how Internet distribution reduced transaction costs in the sale of airline tickets), readily available at http://www. gao.gov/ new - what is cam in real estate. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Investor Protection Info Needed on Broker's Web Sites (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; http://www.prweb.com/releases/2012/10/prweb10053756.htm 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 a number of other nations concluded that U.S.