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 ?
(144) Gels reports that during Senate hearings on heavy electrical equipment pricefixing, a former General Electric executive stated, "'they would never get me to do it again....
McDonnell added: "This will be a huge blow to customers and taxpayers who are all still paying the price for the failed culture in the banking sector that's been widely attributed to be among the main causes of the crash and the scandals over Libor and pricefixing."
The OFT's Ann Pope said: "The OFT takes allegations of pricefixing seriously."
After the completion of its investigation on April 29, 2010, the VCAD found that the agreement was a pricefixing agreement.
Counter-fraud work ranges from issuing penalty notices as a result of patients falsely claiming prescription charges to the multi-million-pound claims against drug companies for alleged pricefixing.
Vertical pricefixing is not invariably the most efficient way to achieve procompetitive effects.
THE collapse of the High Court pricefixing trial has left racing "99 per cent nearer finding a commercial alternative to the levy than we ever have been" according to a racecourse chief executive.
In 1999, the government of the US, where price-fixing has been a criminal offence since 1890, began investigating allegations of pricefixing in the carbon industry within its jurisdiction and this led to Morgan Crucible Plc and a US subsidiary being fined a total of EUR11 million.
Which airline giant was fined a record pounds 271.5million for a pricefixing conspiracy?
Moreover, there are already 20 non-US citizens serving jail sentences in America for pricefixing alone.
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.
IF the fuel companies under investigation for possible pricefixing are found guilty, then I hope they get a suitable punishment.