Why is Price Fixing Harmful?
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All right. So as marketers, few decisions
we make are more important than deciding
what is the right price for our product.
There are a lot of different things that
we need to consider when we make this
and there are a lot of different ways
that we can answer that question
or in other words different prices that
we could end up with.
There's certain things that we need to
avoid though when we set our price,
one of those is price fixing.
is collusion between sellers to maintain
price level to increase profits and to
in the meantime. So why is this a bad
Well for one it means that the market is
being interfered with,
in other words the normal rules of
supply and demand
are not going to be at work. The price is
artificially and so that 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
So as it says here also price fixing can
deprive buyers of fair options
we can be stuck paying that high price
even if we never would out of choice.
Lastly price fixing is illegal so
something we need to avoid as a business
or as marketers
in order to stay out of trouble and in
order to avoid paying fines and
things of that nature. So this is what
price fixing is and why
it's harmful and why we should avoid it.