What is an example of market allocation as a violation of anti-trust law?

Market allocation occurs when businesses agree to divide markets among themselves, thereby limiting competition and violating antitrust laws. In the context of the selected answer, when real estate agents or brokerages agree to sell properties only in specified, distinct regions, they effectively restrict competition. This collusion can lead to diminished choice for consumers and can result in higher prices or reduced service quality.

By allocating different regions, the participating agents or firms sidestep competition, which is central to a free market. Each entity would operate in its own "assigned" territory, thereby limiting the opportunity for buyers and sellers to engage with a wider range of real estate professionals. This type of agreement can be harmful to the overall market as it reduces healthy competition that typically ensures better services and prices for consumers.

Other options, while they describe business practices, do not encapsulate the essence of market allocation as a violation of antitrust law. For instance, imposing uniform commission rates may reflect anti-competitive behavior, but it relates more to pricing tactics rather than the division of markets. Sharing listings among agencies promotes collaboration and can enhance market transparency, while using bids to determine prices involves competitive bidding processes that do not inherently violate antitrust provisions.