Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Home
  • Marketing, Advertising, Sales & PR
  • Principles of Marketing

Why is Price Fixing Harmful?

How pricing fixing hurts customers

Written by Jason Gordon

Updated at September 28th, 2021

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

Why is Price Fixing Harmful? 

Why is Price Fixing Harmful? 

Price fixing, as as discussed in our article What is Price Fixing?, is collusion between sellers to maintain a certain price level to increase profits and to limit competition. in the meantime. So why is this a bad thing?

First, it means that the market interference. In other words, the normal rules of supply and demand are not going to be at work. The price is set artificially, which will determine what we as buyers have to pay. Even if we don't want to pay that price, if we need the product we'll have to pay that price.

Price fixing can deprive buyers of fair options. We can be stuck paying a high price that we otherwise wouldn't if we had a choice for lower-priced options.

Lastly, price fixing is illegal. Generally, it is prohibited under Antitrust law. As such, it is something that we need to avoid as a business or as marketers


Related Topics

  • What is the Right Price for a Product?
  • Competition-Driven Pricing
  • Profit-Oriented Pricing Strategy
  • Sales-Oriented Pricing Strategy
  • Status Quo Pricing Strategy
  • Value-Based Pricing Strategy
  • Penetration Pricing Strategy
  • Manufacturers Suggested Retail Price (MSRP) Definition
  • Markdown
  • Price Skimming
  • Why Give Discounts?
  • Trade Allowances
  • Charging for Product Transportation
  • Legal Issues with Pricing
  • What is Product Dumping?
  • What is Price Fixing? 
  • Why is Price Fixing Harmful?
  • What is Price Discrimination?
  • Why Pricing Discrimination is Harmful
price fixing

Was this article helpful?

Yes
No

Related Articles

  • Multi-Level Marketing - Explained
  • Flesch Formula - Explained
  • Exclusive Distribution - Explained
  • Primary Market Research - Explained



©2011-2021. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand