DPR6033 Global Retailing

price , by the product from a supplier at a specified maximum price. Adhere to
a price book or list price , engage in cooperative price advertising. Price fixing
is permitted in some markets but not others, where allowed it is often known
as resell price maintenance or retail price maintenance. In neo-classical
economics, price fixing is inefficient. The anti-competitive agreement by
producer to fix prices above the market price transfer some of the consumer
surplus to those producer and also result in a deadweight loss.

d) Predatory pricing
 Predatory pricing is the practice of selling a product or service at a very
low price, intending to drive competitors out of the market, or create
barriers to entry for potential new competitors. If competitors or potential
competitors cannot sustain equal or lower prices without losing money,
they go out of business or choose not to enter the business. The predator
merchant then has fewer competitors or is even a de facto monopoly, and
hypothetically could then raise prices above what the market would
otherwise bear. Critics of the concept argue that it is a conspiracy theory,
that there are “virtually no….economists” who believe the theory behind
the concept (though a few believe it is theoretically possible based on
models, there are virtually none who believe it is raising prices after
vanquishing all possible competition. In many countries predatory
pricing is considered anti-competitive and is illegal under antitrust laws.
It is usually difficult to prove that prices dropped because of deliberate
predatory pricing rather than legitimate price competition. In any case,
competitors may be driven out of the market before the case is ever
heard.

e) Price comparison
 A price comparison service also known as shopping comparison or price
engine allows individual to see different lists of prices for specific product.
Most price comparison service do not sell product them self, but source
prices from retailer from whom user can buy. Method in which the selling
price of a new product is arrived at by comparing the benefits it offers with
those offered by the competing brands

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