ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Price fixing refers to an agreement between market participants to collectively raise, lower, or stabilize prizes to control supply and demand. The practice benefits the individuals or firms involved in setting the price and hurts consumers and firms on the receiving end.

Detailed explanation-2: -Price fixing is an agreement among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold. It is not necessary that the competitors agree to charge exactly the same price, or that every competitor in a given industry join the conspiracy.

Detailed explanation-3: -Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels. Generally, the antitrust laws require that each company establish prices and other competitive terms on its own, without agreeing with a competitor.

Detailed explanation-4: -Generally, it is carried out through an agreement for maximum or minimum prices. In these cases, companies fix the prices at a higher level to earn higher gross profits. The consumer has no option but to buy at those higher prices. Vertical Price Fixing occurs when it is done along the supply chain.

Detailed explanation-5: -price-fixing, any agreement between business competitors (“horizontal”) or between manufacturers, wholesalers, and retailers (“vertical”) to raise, fix, or otherwise maintain prices. Many, though not all, price-fixing agreements are illegal under antitrust or competition law.