Management and Organizational Studies 2275A/B Chapter Notes - Chapter 24: Rigging, List Price, Price Fixing

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Loren King

Document Summary

One way for business to manipulate a market is through conspiring with direct competitors to control prices. If this can be proven, the businesses will be guilty of a criminal offence. Price fixing, maintaining, increasing, or controlling the price. For a criminal offence to be proven, it must be established not only that there was an agreement or conspiracy to set prices, but also that the agreement lessened competition. Bid rigging: conspiring to fix the bidding process to suit the collective needs of those submitting bids. Bid rigging is a specialized form of conspiracy by producers/suppliers to manipulate a market through price. No market impact need to be proven. Abuse of dominant position: conduct that is reviewable under the competition act because a dominant company or group of companies have engaged in anticompetitive behaviour that unduly prevents or lessens competition. Buying up products to prevent the erosion of price levels. Requiring suppliers to sell only to certain customers.