illegal anti-competitive business behaviour Flashcards
What is Price fixing and misuse of market power
where firms in an industry collaborate to set prices or impose minimum resale prices
what is Price discrimination
occurs when, for the same good or service, a business chooses to charge different prices to different customers
what is Exclusive dealing
where companies refuse to supply their products or services to one or more firms due to a special agreement
what is Collusive bidding
when, in submitting a tender or quote for the supply of a good or service, supposedly competing firms meet secretly beforehand to agree on higher more profitable prices for inclusion on their quotes or bids for a contract. Competition amongst rivals is restricted. The successful business that wins the contract might then share their super profits around amongst others who lost the deal due to their even higher prices.
what is Price leadership
where the dominant or leading firm in an industry sets prices that other firms follow
what is Market zoning
where competing firms in a region reach an agreement to divide up the market into zones, areas or regions where they do not to compete with each other over prices
what is Interlocking directorships
where a person acting as a member of the board of directors for one company is also on the board as a director of a supposed rival company
what is Predatory pricing
where the dominant firms conduct a price war involving big cuts in prices with the intention of driving rival firms bankrupt, and then later enjoying the market without competition
what is Unconscionable conduct
where a business crosses the line and treats its suppliers or customers very harshly.
