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.
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.
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.
While 103 firms have been punished, the watchdog found evidence of pricefixing by more than 1,000 builders on 4,000 jobs.
The penalties are the largest yet imposed by the watchdog under the Competition Act for pricefixing.
158) Justice Breyer once commented, "Isn't BMI a case where pricefixing was so clearly justifiable that the Supreme Court permitted it despite the per se rule?
OIL bosses could face jail if they are found guilty of pricefixing, David Cameron said yesterday.
The claim was brought by Bags (Bookmakers' Afternoon Greyhound Services) together with William Hill, Ladbrokes and Betfred, who allege that Amalgamated Racing (Amrac) is guilty of illegal pricefixing by signing exclusive deals with 31 of the 60 UK racecourses to bring live TV pictures to betting shops via TurfTV.
Asked about the bidding for the television rights to English Premier League football, which Sky used to build its dominant position, Mr Ball said it was still awaiting the results of the European Commission pricefixing probe of the league.
DaimlerChrylser also rigged the market in Belgium through a pricefixing agreement limiting to 3pc the rebates its Belgian dealers could offer customers.