Wednesday, June 17, 2009

Price fixing for private buses??

Sometimes, I wonder what are basis for the complaints of price fixing. To me, price fixing is very subjective. This the definition from Wikipedia:

Price fixing is an agreement between business competitors to sell the same product or service at the same price.

The keyword is agreement. It seems that many take the word price fixing literally. For example, all companies sell the product or service at $x. Does that mean they are engaged in price fixing? From what I read in the news, it seems that the prices for the private bus are not even the same. So where does this complaint originate from?

If the complaint is against taxis, I will understand the logic behind it. So many taxi providers but all the same basic flag-down prices. Is that price fixing?

You can even expand this "price fixing" out to other products. All the bubble tea I've seen so far is sold at $1.50. How about $10 T-Shirts from Hang Ten, Giordarno, etc? Price of coffee? Different travel agencies selling the same package to a country for the same price? Is Retail Selling Price (RSP) considered as price fixing?

Sometimes people just have to understand that the market or the dominant company dictates the price. That's called business. That's called life.

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