What does the Sherman Antitrust Act prohibit in real estate?

The Sherman Antitrust Act is a federal statute that prohibits activities that restrict competition and create monopolies, particularly in trade and commerce. In the context of real estate, it specifically addresses unethical business practices such as price fixing and geographic non-competes.

Price fixing occurs when competitors agree to set the same price for a service, which ultimately undermines fair competition and can lead to inflated costs for consumers. Geographic non-competes can prevent real estate agents from operating in certain areas, thereby limiting market competition and choices for consumers.

The other options do not fall under the prohibitions established by the Sherman Antitrust Act. Exclusive listings, while they can affect competition, are not outright prohibited; they simply represent a business practice that can be used legally. Commission sharing is a common practice in real estate and typically does not violate antitrust laws as it can foster collaboration between agents. Advertising discounts are allowed as they do not represent a restriction on competition in the same way as price fixing or non-competes. Thus, the Sherman Antitrust Act effectively targets the practices mentioned in the correct answer.