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 ?
Plaintiffs alleging an illegal price-fixing agreement can use either direct evidence or circumstantial evidence to demonstrate that the defendants agreed to fix prices.
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.
SMOKE SIGNALS: Two cigarette manufacturers and 11 retailer face a price-fixing probe
18) Each employee who plays a part in the price-fixing conspiracy is an agent of a firm participating in a criminal enterprise.
Two months ago, they fined Asda and Sainsbury's pounds 116 million for their part in the 2002 price-fixing scandal that hit shoppers with an extra 3p on a pint of milk.
According to Qantas' CEO, Geoff Dixon, the price-fixing was levied via fuel surcharges in the international air cargo market between 2000 and 2006.
Lufthansa yesterday said it agreed to pay $85 million to settle a string of class-action lawsuits filed in the US following the February launch of a multinational probe into alleged price-fixing by airlines carrying cargo.
The FTC found that NTSP's use of a poll facilitated a price-fixing agreement among its competing physician members.
A RETIRED oil worker was yesterday fined EUR15,000 for his part in a heating fuel price-fixing cartel.
A federal grand jury indicted two former executives at German chemical maker Bayer AG for allegedly taking part in an international price-fixing scheme that drove up the costs of rubber chemicals used to make shoes, tires and other products.
When s 45A was added to the Trade Practices Act 1974 (Cth) in 1977, price-fixing became illegal per se.