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 ?
Using both economic theory and empirical evidence, the Article explains how judgment-sharing agreements may reduce settlement values, lead to the suppression of incriminating evidence, reduce the likelihood of success of meritorious price-fixing suits, and make price fixing cost-beneficial The Article then argues that fairness arguments in favor of judgment-sharing agreements (and contribution more generally) are misguided and easily disproved, and in any event outweighed by the potential anticompetitive effects of such agreements.
By "foreign price fixing" and "foreign cartels," this Article refers to fixing prices in markets outside of the United States.
Kevin Lovell, CEO of SAPA, said: "The allegations are not merely price fixing per se but are various in nature.
No one is saying the celebration was engaged in illegal price fixing.
Passing sentence Judge Michael O'Shea said he accepted Doran had done a lot that was correct and proper but the price fixing was well organised and monitored.
There is also the wider point of the whole concept or principle of price fixing. Why stop with fixing the prices of food and medicine.
Peter Roth QC, for Amrac, claimed the evidence contradicted the price fixing claim by the major bookmakers.
MAJOR supermarket chains confirmed yesterday they had received visits from the Office of Fair Trading (OFT), which is said to be investigating allegations of price fixing.
First, antitrust law should increase the severity and probability of criminal punishment of individuals who participate in price fixing. Second, antitrust law should reward individuals who expose cartel activity by providing them immunity from all criminal and civil liability and by paying antitrust bounties to such faithless agents.
FAMILIES face whopping 21 PER CENT increases in gas bills in the New Year because of price fixing in Europe.
If a price recommendation does have the effect of 'fixing, controlling or maintaining' price there seems little reason to treat it differently from other price fixing agreements....
Welter and the physician groups orchestrated boycotts and engaged in price fixing and other anticompetitive conduct, the FTC says.