Wiki User
∙ 6y agoAn 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:
Two competing grocery stores agreeing to charge the same price for milk
A group of car manufacturers agreeing to set a minimum price for their vehicles
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:
Identical prices for competing products
A lack of price competition
Refusal by suppliers to sell to retailers who discount their products
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
It is called "price collusion" and it is a criminal offence for companies to do this - they are rigging the market.
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.
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
because banks, thrifts, pension companies, insurance companies, and security firms can now merge with one another and sell each other's products
Agriculture, because Mexico and Canada are major customers for U.S. farm products.
Price-fixing
It is called "price collusion" and it is a criminal offence for companies to do this - they are rigging the market.
Price Fixng or Cartel.
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.
yes
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.