Which type of antitrust violation occurs when real estate firms agree to divide their market so they don't compete with one another?

The situation described involves real estate firms agreeing to divide their market to avoid competition, which is known as market allocation. This type of antitrust violation occurs when competing businesses come to an agreement to divide geographical areas or specific customer segments among themselves, effectively reducing competition and allowing each firm to monopolize its assigned segment of the market.

Market allocation can harm consumers by limiting their choices and potentially leading to higher prices since the firms are not competing against each other. In this case, rather than competing for customers in the same area or demographic, the firms have agreed not to encroach on each other's designated segments, which is a clear violation of antitrust laws intended to promote competition and protect consumer interests.

Understanding market allocation is crucial for real estate professionals to ensure compliance with legal standards and maintain fair competition.