price fixing

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Price Fixing

A practice whereby all competitors in an industry agree to charge the same price for their competing products. Price fixing deprives consumers of the fair market price for the products because the fixers can simply raise and lower prices at will. Most economists (with objectivists being a major exception) believe price fixing to be anti-competitive, thus they oppose it. In the United States, price fixing is illegal under the Sherman Anti-Trust Act. See also: Monopoly, Duopoly.

price fixing

the establishment of a common PRICE for a good or service by a group of suppliers acting together, as opposed to each supplier setting his own price independently. Price fixing is often a feature of an unregulated OLIGOPOLY market. See ANTICOMPETITIVE PRACTICE, RESTRICTIVE TRADE AGREEMENT, COLLUSION, CARTEL, ADMINISTERED PRICE.

price fixing

An agreement among competitors to charge roughly the same price as each other, denying consumers a meaningful choice in the marketplace. The practice is illegal under the Sherman Antitrust Act.In the real estate area,the most famous application of this principle has to do with real estate commissions and the complaint that local REALTOR® association members agreed to all charge the same rate. It is the reason for the disclaimer that appears on most real estate company form listing contracts and purchase contracts,“The commission is negotiated among the parties and is not set by... .“

References in periodicals archive ?
Clinard and Yeager point out that illegal pricefixing tends to be industry wide.
The judge had ruled in August that the claim of illegal pricefixing made against racecourse owners who set up their own joint-venture to get more money out of televised racing in betting shops must also fail.
As a result, the judge also dismissed part of a counterclaim in which Amrac contended that, if it was guilty of pricefixing, then exclusive licences granted to Bags and its partner, Satellite Information Services (SIS), were also in breach of the rules.
The four are part of a group of 10 past and present BA staff who have been refused immunity under a plea agreement between the airline and the US Department of Justice (DoJ) over the pricefixing.
The OFT's boss, John Fingleton, who was appointed in 2005, has vowed to stamp out big business cartels and pricefixing.
The firm lost its presence in India's securities markets in 2002, when it was banned for its alleged part in a pricefixing scandal.
In fact, the report concludes that the war is "mainly about access, control and trade of five key mineral resources: coltan, diamonds, copper, cobalt and gold," and it details exploitation of these by means of confiscation, extraction, forced monopoly, and pricefixing.
Manchester United maintains that it has not participated in pricefixing in the market for replica kits.
Thus, the Seventh Circuit reviewed under the per se rule certain agreements among motion picture exhibitors to "`split[],' or allocat[e] among themselves, the rights to negotiate for films released by motion picture distribution companies," agreements that were held to amount to illegal pricefixing.
Telmex also has other undisputed advantages--as the dominant telephone service provider in every sector, competitors have long argued that Telmex continues to enjoy monopolistic powers and uses bully tactics such as pricefixing to help squeeze out market newcomers.
Competition Commissioner Mario Monti said the company had violated rules over several years on pricefixing, leasing competition and parallel trade, preventing people from buying a Mercedes more cheaply in another country and bringing it home.
OIL bosses could face jail if they are found guilty of pricefixing, David Cameron said yesterday.