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 ?
A social norm of price fixing can also exist within a given corporation.
In fact, Ms Tickle points out, all of the UK's own prosecutions for price fixing have been by the Serious Fraud Office under the offence of conspiracy to defraud rather than the Enterprise Act cartel offence: 'I am not aware of a single prosecution using the Enterprise Act and this raises the question of why it was needed,' she said.
The economists chose the five years before 1981 as a base period because they preceded the alleged price fixing.
Ultimately, JSAs undermine the deterrent effect of laws against price fixing.
Mr Wood added: 'The OFT is really clamping down on price fixing.
Both Hoechst and Eastman Chemical pleaded guilty to price fixing in 2000 and 1999, respectively.
The Australian Competition and Consumer Commission (ACCC) has appealed against the recent decision by Justice Dowsett in the Federal Court dismissing the ACCC s allegations that Australia and New Zealand Banking Group Limited (ANZ) had breached the price fixing provisions of the Trade Practices Act 1974 (the Act), now Competition and Consumer Act 2010.
Although price-fixing agreements remain per se illegal in the United States, courts have undermined the per se rule against price fixing by making it harder for plaintiffs to prove that such an agreement exists.
Replying to a question regarding the loss to them due to the issue of two-month gay of price fixing, he said that they had not to suffer from the loss situation but if their demand is not met and further delayed then they would have to bear it as there is not enough water in Kotri or Sukkur barrage to provide to the sugar cane.
They argued that per se price fixing includes agreements to fix a "price element," such as a rate benchmark, and that the lower court improperly concluded that the alleged manipulation of LIBOR did not harm competition at all.
7 ( ANI ): Tech giant Apple has been reportedly ordered by a US judge to make changes to its contracts with publishers in a bid to prevent any e-book price fixing, of which, the company was held guilty in July.