price parallelism

price parallelism

the tendency in an OLIGOPOLY market for suppliers to charge identical PRICES. Parallel prices may come about because suppliers, recognizing their MUTUAL INTERDEPENDENCE, desire to avoid price competition, which reduces their profits, or they may come about as a result of deliberate COLLUSION between suppliers to ‘fix’ prices that maximize their joint profits. See also PRICE LEADERSHIP, CARTEL.
References in periodicals archive ?
In a report tabled in Parliament on Thursday, the committee sought to know the government's preparedness to proactively intervene in instances of cartelisation, price parallelism and abuse of dominance especially in the wake of new business models such as electronic and mobile commerce.
The committee added that it would like to be apprised of the ministry's efforts in a system which can proactively intervene in cases of cartelisation, price parallelism and abuse of dominance especially when new business models like e- rail, e- commerce and m- commerce will come.
For the purpose of review, the following shall be considered as a yardstick which may include but shall not be limited to the monitoring of: unexplained escalation in price levels, tendency of price parallelism, changes in market share and levels of concentration, new investments made in Balancing Modernization Replacement of the target firm by the acquirer leading to enhancement of production capacity; and commitment to non-discriminatory behaviour.