Maintaining of prices at certain level by agreement

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Reference no: EM132226902

Give the defintion & provide 2 examples for each.

1. Price fixing

Definition

The maintaining of prices at a certain level by agreement between competitors

Examples (provide 2)

- Two Airline companies team up to sell at the same price in order to maintain price margin.

2. Price discrimination

Definition

The action of selling the same product at different prices to different buyers in order to maximize sales and profits

Examples (provide 2)

- Movie theater prices to the elderly vs. children

3. Deceptive pricing

Definition

- the method by which retailers use deceptive means to trick the customers into thinking that they are paying a lower price for the product, than what they are actually supposed to.

Examples (provide 2)

4. Predatory pricing

Definition

- the pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.

Examples

5. Fair trade and minimum markup laws

Definition

Examples (provide 2)

Reference no: EM132226902

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