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Exam distinction 220 · Practice of Real Estate

Price Fixing Versus Market Allocation Versus Group Boycott

Price fixing is a competitor agreement about prices, commissions, fees, discounts, or pricing methods. Market allocation divides customers, territories, or business. A group boycott is coordinated refusal to deal. Independent business decisions are not agreements, and competitors must set commissions and service terms independently.

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

What is the exam-ready distinction?

Price fixing is a competitor agreement about prices, commissions, fees, discounts, or pricing methods. Market allocation divides customers, territories, or business. A group boycott is coordinated refusal to deal. Independent business decisions are not agreements, and competitors must set commissions and service terms independently.
Official syllabus mapping for Price Fixing Versus Market Allocation Versus Group Boycott
Roadmap post220 of 500
Official syllabus topicPractice of Real Estate: Federal Antitrust and Competition
Official PSI areaPractice of Real Estate
Published weight12% of the 100-question national portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026
Content checked throughAugust 2, 2026

The Rule

PSI publishes a weight for the complete official area, not a guaranteed count for this individual comparison. Use the source, document, actor, event, and timing stated in the question before applying a memorized definition.

Side-by-side comparison

Read across each row. The terms are deliberately compared on identical dimensions so the difference remains clear when the exam hides the vocabulary inside a scenario.

Comparison of Price fixing, Market allocation, Group boycott
Decision dimensionPrice fixingMarket allocationGroup boycott
AgreementCompetitors agree on price, commission, fee, discount, or pricing methodCompetitors divide customers, territories, property types, or businessCompetitors agree not to deal with a person or business, or only on coordinated terms
Exam clueStandard commission or fee scheduleYou take north county; we take south countyEveryone refuses to work with a discount brokerage
Lawful contrastEach firm sets terms independentlyEach firm competes wherever it choosesEach firm makes an independent dealing decision
Required coreConcerted competitor conductConcerted competitor conductConcerted conduct with anticompetitive purpose or effect under governing law

Decision rule

Find the agreement first, identify what competitors coordinated, and classify whether it controls price, divides the market, or organizes a refusal to deal.

Georgia-specific distinction

Federal antitrust law applies to Georgia brokerage. GREC does not set commission rates, and a local custom or multiple-listing environment does not authorize competitors to coordinate fees, territories, customers, or exclusions.

Worked example

Scenario. Competing brokers agree that none will list a home for less than a 6 percent commission.

Reason it through. The firms are competitors and have coordinated the price of brokerage services rather than setting terms independently.

Answer. The agreement is price fixing.

Common exam traps

  • Assuming traditional commission language makes coordination lawful
  • Calling independent matching an agreement without evidence
  • Confusing customer division with price fixing
  • Saying every unilateral refusal is a group boycott

Original practice questions with detailed explanations

These are original instructional questions mapped to the July 1, 2026 PSI outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

Competitors agree that each will serve a different county. What is the central violation?

  1. A. Market allocation
  2. B. Independent competition
  3. C. Reasonable accommodation
  4. D. Blockbusting
Show answer and explanation →

Answer: A. Market allocation

Market allocation is correct. Price fixing is a competitor agreement about prices, commissions, fees, discounts, or pricing methods. Market allocation divides customers, territories, or business. A group boycott is coordinated refusal to deal. Independent business decisions are not agreements, and competitors must set commissions and service terms independently. The remaining options, Independent competition; Reasonable accommodation; Blockbusting, do not match the controlling category or fact.

Question 2

Competing brokers agree that none will list a home for less than a 6 percent commission.

  1. A. It is lawful because 6 percent is traditional.
  2. B. The agreement is price fixing.
  3. C. It is market allocation because homes are involved.
  4. D. It is only a boycott because some sellers may refuse.
Show answer and explanation →

Answer: B. The agreement is price fixing.

The firms are competitors and have coordinated the price of brokerage services rather than setting terms independently. The supported conclusion is: The agreement is price fixing. The other choices replace those controlling facts with a neighboring concept or an unsupported absolute rule.

Question 3

What should a candidate identify first when comparing Price Fixing Versus Market Allocation Versus Group Boycott?

  1. A. The option with the longest definition, without classifying the facts.
  2. B. A memorized Georgia rule, even when the question asks for a national concept.
  3. C. Find the agreement first, identify what competitors coordinated, and classify whether it controls price, divides the market, or organizes a refusal to deal.
  4. D. The answer that sounds most favorable to one party, regardless of the document or event.
Show answer and explanation →

Answer: C. Find the agreement first, identify what competitors coordinated, and classify whether it controls price, divides the market, or organizes a refusal to deal.

Find the agreement first, identify what competitors coordinated, and classify whether it controls price, divides the market, or organizes a refusal to deal. That sequence identifies the legal category before the label. Definition length ignores the facts, jurisdiction confusion answers a different question, and sympathy cannot replace the document, event, calculation, or governing rule.

Mastery tracking

Mark this distinction mastered only when every statement is true.

  • Define every compared term without using the other term as the definition.
  • Rebuild the comparison table from memory.
  • State the decision rule and Georgia distinction without notes.
  • Solve the worked example after changing one controlling fact.
  • Explain why every trap and distractor is tempting but wrong.
  • Answer all three original questions correctly in mixed practice on a later day.

Recommended next lesson

Continue with Seller Net Versus Buyer Funds Needed at Closing. Continue to roadmap comparison 221.

Return to the complete exam-concept library or the Practice of Real Estate hub.

Price Fixing Versus Market Allocation Versus Group Boycott questions

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Last reviewed August 2, 2026. Editorial standards.

Is Price Fixing Versus Market Allocation Versus Group Boycott on the Georgia real estate exam?

Yes. It maps to the official Practice of Real Estate area, which represents 12% of the 100-question national portion. PSI does not publish a guaranteed question count for this individual distinction.

What is the fastest way to distinguish Price Fixing Versus Market Allocation Versus Group Boycott?

Find the agreement first, identify what competitors coordinated, and classify whether it controls price, divides the market, or organizes a refusal to deal.

What Georgia-specific point should I remember?

Federal antitrust law applies to Georgia brokerage. GREC does not set commission rates, and a local custom or multiple-listing environment does not authorize competitors to coordinate fees, territories, customers, or exclusions.

How should I study similar-looking real estate terms?

Compare the terms across the same dimensions, classify the controlling fact before reading the choices, explain why each distractor belongs to a different concept, and retest the distinction later in mixed practice.