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 ?
Although this structure is perhaps the safest way to avoid price-fixing exposure, ancillary legal issues may arise, including the corporate practice of medicine doctrine (discussed below) and licensing issues under state insurance or other regulatory laws.
In ChoiceCare, a group of physicians claimed that the plan, which was physician-controlled, had engaged in unlawful price-fixing through its maximum fee schedules.
Since June 20, when the Enterprise Act came into force, any agreement between competitors to fix resale prices in the UK has also become a criminal offence and the directors of any company engaged in price-fixing are vulnerable to being disqualified for up to 15 years.
Glanbia, which denies the claims, was alleged to be the "driving force" behind the price-fixing while Dairygold was also a key player.
The Premiership clubs promised the OFT two years ago that they would end price-fixing and that prices would fall by up to a third.
The Justice Department has been investigating price-fixing for graphite electrodes, used in electric arc furnaces to make steel, for several years now.
O'Connor also noted that it remained illegal for manufacturers to impose minimum prices on dealers - a version of price-fixing that is still automatically prohibited.
Glanbia, the largest milk supplier in the Irish Republic, and Sligo Dairies have undertaken in the High Court in Dublin not to enter into any price-fixing agreement on the retail price of milk.
John Vickers, director general of fair trading, said: 'This case shows how leniency arrangements help uncover price-fixing agreements, which distort competition and keep prices artificially high.
The price-fixing comes just months after the FA publicly promised the OFT that it would help stamp out corruption in the pounds 250million-a-year replica kit market.
BOSTON -- In a landmark court ruling, the Massachusetts Supreme Judicial Court today ruled that Massachusetts consumers can sue companies engaged in price-fixing for damages under the State's Consumer Protection Act.
for allegedly aiding and abetting UCAR's price-fixing of graphite electrodes for use in steel production.