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 ?
The ACCC alleged that in 2004 the ANZ Bank sought to limit the amount of a refund a mortgage broker, Mortgage Refunds Pty Ltd, could provide to its customers in respect of arranging ANZ home loans, in contravention of section 45 of the Act, by operation of section 45A which deems price fixing agreements to be in breach of section 45.
Price-fixing is a tricky policy which will only encourage more and more demands - with good justification - for price fixing and the next natural move and demand will be for government subsidies.
The FTC found that the PPA in effect renders NTSP as the sole bargaining agent of the competing physicians, and thus facilitates price fixing among competitor physicians.
Justice Department has never sought antitrust or price fixing charges against BFI, even with its string of local convictions.
In August 2000, Shaw Industries and Mohawk Industries also reached agreements to settle the charges against each company for price fixing.
Businesses are specifically prohibited from engaging in activities that unduly restrain others from competing freely - boycotts, tying agreements and price fixing, for example.
Redled filed an antitrust suit alleging price fixing by its five largest customers, which it said conspired to fix and hold down the prices they were paying Redled for lead ingot.
If Congress would step in and stop the price fixing, U.
LLP] has launched a class action regarding alleged price fixing in the market for gas.
Construction giants Balfour Beatty are among the 112 firms alleged to have taken part in price fixing when bidding for business.
INSIDERS are being offered a pounds 100,000 reward to blow the whistle on price fixing scams.
Robert Wiseman Dairies says it is frustrated by the long wait for a decision from the Office of Fair Trading on two price fixing inquiries.