PRICE FIXINGS Meaning and
Definition
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Price fixing refers to a collusive practice in which competitors within an industry come together to establish and maintain a fixed price for their goods or services. It involves an agreement between two or more entities, typically competitors, to coordinate their pricing strategies with the aim of manipulating the market and maximizing their profits.
This anti-competitive behavior is typically considered illegal in most jurisdictions as it can harm market competition, restrict consumer choice, and result in inflated prices. Price fixing can take different forms, such as setting minimum or maximum prices, agreeing on price ranges, or collectively determining the timing and amount of price increases.
The participants in a price fixing scheme may include individuals, companies, or associations operating within the same industry or market. These entities collaborate to eliminate competition and control prices rather than letting them be determined by market forces such as supply and demand. Price fixing can occur across various sectors, including but not limited to, commodities, consumer goods, retail, manufacturing, and professional services.
Price fixing often involves secretive communication or meetings to establish the agreed upon prices. Once established, the participants adhere to the fixed prices to maintain their market power and increase their profit margins. Price fixing can lead to reduced innovation, inefficiencies, limited market access for new entrants, and adverse effects on overall economic welfare. Governments and regulatory authorities actively enforce laws prohibiting price fixing to ensure fair competition, protect consumer rights, and foster efficient markets.
Common Misspellings for PRICE FIXINGS
- orice fixings
- lrice fixings
- -rice fixings
- 0rice fixings
- peice fixings
- pdice fixings
- pfice fixings
- ptice fixings
- p5ice fixings
- p4ice fixings
- pruce fixings
- prjce fixings
- prkce fixings
- proce fixings
- pr9ce fixings
- pr8ce fixings
- prixe fixings
- prive fixings
- prife fixings
- pride fixings
Etymology of PRICE FIXINGS
The term "price fixing" is composed of two words: "price" and "fixing".
The word "price" originates from the Latin word "pretium", which means "value", "reward", or "price". It entered into Middle English through the Old French word "pris", which primarily meant "price" or "value".
The word "fixing" is derived from the verb "fix", which has its roots in the Latin word "figere", meaning "to fasten" or "to secure". In English, "fixing" refers to the act of making something stable, secure, or stationary.
When combined, the term "price fixing" refers to the practice of establishing or controlling prices, usually done by collusion between competitors, with the intent of restricting competition and maintaining higher prices.
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