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 effort to define a relevant antitrust market for this, or any other, analysis. 142. See, e. g., STEVE SAWYER, LOCAL REALTY MARKET virginia beach timeshare rentals COMPETITION: PROOFS AND INSIGHT FROM AN ANALYSIS OF 12 LOCAL MARKETS 3 (2005 ), available at http://www.
nsf/Pages/Sawyer05? OpenDocument (keeping in mind existence of "micro- markets" within cities. For example, within the Washington, DC city area, there is little or no competition amongst purchasers, sellers, and property agents 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., Elder Economist, National Association of Realtors, Discussion at the Federal Trade Commission & Department of Justice Public Workshop: Competition Policy and the Real Estate Industry, Real Estate Brokerage Market: Structure-Conduct-Performance, at 9 (Oct. 25, 2005) [hereinafter Yun Presentation], readily available 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 - what are the requirements to be a real estate appraiser. 2006), readily available at http://library. corporate- ir. net/library/19/ 198/198414/items/ 223251/RealogyDecember06% 20Final. what are the requirements to be a real estate appraiser. pdf. 151. NAR, Public Comment 208, at 6 (" In a few 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. 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, Bigger is Not Much Better: Brokerage and Time on the Market, 10 J.
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23, 27-28 (1995 ). The authors utilized a sample of 388 house sales in calendar year 1991 from the several listing service. Id. at 27. 155. James E. Larson & Won J. Park, Non-Uniform Percentage Brokerage Commissions and Property Market Efficiency," 17 JOURNAL OF THE AMERICAN REALTY 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, however, this is not always the case with respect to the entry of new business designs in the realty brokerage market. See infra Chapter IV. 157. Perriello, Tr. at 146. See likewise Lewis, Tr.
"); Hsieh, Tr. at 235 (" there's fairly free entry into the occupation and into the realty brokerage company."). The ability of amateur entrants to bring in clients relative to more experienced agents 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, usually after having been in service for several years, and passing a broker's license test. The precise requirements differ by state.").
One author has actually explained the service that brokers offer as not simply a finished match of buyer and seller, however rather "a finished deal at some level of service provided to the celebrations included." Geoffrey K. Turnbull, Realty Brokers, Nonprice Competitors and the Real Estate Market, 24 PROPERTY ECONOMICS 293, 295 (1996 ).
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Id. The level to which brokers provide these services "offers the margin for nonprice competition among brokers." Id. 164. As talked about in Chapter I of this Report, rebates are a meaningful element of rate competition between brokers in states that do not forbid rebates. Anti-rebate laws are discussed in more information in Chapter IV https://www.mapquest.com/us/tennessee/wesley-financial-group-305992243 of this Report.
1983 FTC PERSONNEL REPORT, supra note 9, at 64. See also id. at 55 (" [W] e discovered regional markets to consistently have commission modes at either six or seven percent. These are the 'regular' modes for essentially all markets, no matter how they might differ from one another, and nationwide an extremely high percentage of property brokerage transactions took place 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 specific type of energetic competition common in many other markets."). 166. See, e. g., Hsieh, Tr. at 261 (" [I] f you return to the FTC report from more than twenty years ago, things truly have not changed that much."); Bourgoin, Public Comment 30 at 1 (" [T] he FTC did a research study which was finished and published in 1983.
REALTY RES. 187, 187 (2001) (" A variety of research studies have actually argued that the uniformity of the commission rate throughout various properties and areas is an indicator of collusive behavior."); Richard J. Buttimer, Jr., A Contingent Claims Analysis of Real Estate Listing Agreements, 16 J. REAL ESTATE 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 offer a home is not a direct function of the sales price which if there is not collusion among brokers, there what is a floating week in timeshare ownership must be, at the minimum, variation in commission rates across home 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 requirement, the realty brokerage market is substantially less competitive than it needs to be and commissions are artificially high."); White, supra note 47, at 2 (" [A] more competitive result would surely imply that typical charges would be lower than they are today which 'the 6% (or 7%) commission' would be not likely to stay as the modal fee."); John C.
8, 2005) (noting "a relatively extensive view that brokerage is not a competitive market" based a number of perceptions, including: (1) extreme commission rates that are "sticky downward" even as technology decreases brokers' costs; (2) commission rates are greater in the United States than in many other industrialized nations; (3) lobbying efforts by NAR and state Real estate agent associations in favor of state laws limiting competitors; (4) NAR's successful lobbying of Congress to restrict banks from going into the property brokerage business; and (5) NAR-imposed restrictions on discount rate and Internet brokers' access to the MLS).
See, e. g., GAO REPORT, GAO-03-749, Airline Ticketing: Impact of Modifications in the Airline Company Ticket Circulation Market (July 2003) (going over how Internet distribution lowered deal costs in the sale of airline tickets), available at http://www. gao.gov/ brand-new - how to buy real estate with no money. items/d03749. pdf; GAO REPORT, GAO/GGD -00- 43, Online Trading: Better Financier Security Information Needed on Broker's Website (May 2000) (discussing how Web brokerages charge far less commission per trade on securities), readily available 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 evaluating commission rates in the United States and numerous other nations concluded that U.S.