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What do you call an agreement made between differnent companies to charge the same amount for products?
Wiki User
∙ 6y ago
An agreement made between different companies to charge the same amount for products is called **price fixing**.
It is a type of anticompetitive practice that is illegal in most jurisdictions. Price fixing can be done either horizontally, between competitors, or vertically, between a manufacturer and its distributors or retailers.
Price fixing can have a number of negative consequences for consumers. It can lead to higher prices, less choice, and lower quality products. It can also stifle innovation and reduce economic growth.
Here are some examples of price fixing:
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Two competing grocery stores agreeing to charge the same price for milk
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A group of car manufacturers agreeing to set a minimum price for their vehicles
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A book publisher agreeing with its retailers to set a minimum resale price for its books
Price fixing can be difficult to detect, but there are a number of red flags that can indicate that it is taking place. These include:
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Identical prices for competing products
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A lack of price competition
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Refusal by suppliers to sell to retailers who discount their products
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Industry-wide agreements on pricing policies
If you suspect that price fixing is taking place, you can report it to the relevant competition authority.
Note: It is important to note that price fixing is illegal in most jurisdictions, and companies that engage in it can face serious consequences, including fines and imprisonment.
earningember
Vivid Kreations
A pricing collusion among distinct companies is commonly referred to as "price fixing." This clandestine agreement undermines fair market competition, leading to inflated prices that harm consumers. Such practices are typically illegal as they stifle innovation and hinder the natural ebb and flow of supply and demand. Regulatory bodies play a crucial role in detecting and penalizing such anticompetitive behavior to maintain a level playing field for businesses and protect consumer interests. Vigilance against price fixing ensures a healthier marketplace where competition thrives, fostering innovation and affordability.
Wiki User
∙ 6y agoIt is called "price collusion" and it is a criminal offence for companies to do this - they are rigging the market.
stolen101
Price-fixing
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What do you call an agreement made between companies to charge the same amount for products?
It is called "price collusion" and it is a criminal offence for companies to do this - they are rigging the market.
What do you call an agreement made between different companies to the same amount for product?
An agreement between different companies to charge the same amount for a product or service is known as "price-fixing" whereby rival companies agree not to sell goods below a certain price.
What is the difference between cartel and collusion?
A cartel is a formal agreement between companies to control the price of a commodity or product etc - like OPEC. Tacit collusion occurs when companies make an informal agreement to fix prices (i.e. they do this without letting their competitors or official bodies know). Your confusion might arise from the fact that members of a Cartel (an officially organised group) can still engage in unofficial agreements (tacit collusion), although it is usually firms outside a cartel who do this
Why are the lines between the categories of financial firms becoming more blurred than in the past?
because banks, thrifts, pension companies, insurance companies, and security firms can now merge with one another and sell each other's products
What part of the US economy has particularly benefited from the North American Free Trade Agreement (NAFTA) between Canada the US and Mexico?
Agriculture, because Mexico and Canada are major customers for U.S. farm products.
What do you call an agreement between different companies to charge the same amount for products?
Price-fixing
What do you call an agreement made between companies to charge the same amount for products?
It is called "price collusion" and it is a criminal offence for companies to do this - they are rigging the market.
What is an agreement made between different companies to charge the same amount for products?
Price Fixng or Cartel.
What do you call an agreement made between different companies to charge the same amount amount for products?
An agreement between different companies to charge the same amount for a product or service is known as "price-fixing" whereby rival companies agree not to sell goods below a certain price.
Is there any agreement between local private sector and foreign companies?
yes
What do you call an agreement made between different companies to the same amount for product?
An agreement between different companies to charge the same amount for a product or service is known as "price-fixing" whereby rival companies agree not to sell goods below a certain price.
