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Price Fixing Definition/Proof

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  • 14-01-2013 10:25pm
    #1
    IsThisOneFree
    Registered Users Posts: 254 ✭✭


    Over the past 18 months (since I started driving) I've noticed that the 3 filling stations in my Mum's nearest town are all selling fuel at the same price. Obviously I'm not around them 24/7 so I can't see when one changes the price, but every time I check, they're all advertising the same price. Does this constitute price fixing ? Or how for that matter could one prove that the 3 businesses are price fixing ? Surely something like that would be almost impossible to prove, even if all 3 did change their prices on the same day (each time they do change) ? I feel mean-spirited wanting to report them, but it's in everybody's interest to encourage healthy competition, right .................


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    #2
    hfallada
    Closed Accounts Posts: 4,180 ✭✭✭hfallada


    Maybe. However in economics there is a market structure called an oligology which a petrol station would. Prices among all suppliers tend to be the same as price are independent meaning all suppliers see what the others are charging so if one lowers prices all suppliers lower prices. Likewise if one increases prices other dont as they know they wont make any more money as consumers will switch to them

    Supermarkets are oligolistic too. Just because all supermarkets charge the same prices for the same goods doesnt mean their price fixing its just the industry theyre in.

    But you could always report the petrol stations to the competition authority anyways


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