Sentence examples for horizontal agreements from inspiring English sources

On the other hand, if price competition is minimized through horizontal agreements, then the pressure to cut costs by cutting quality will be reduced.

More important, horizontal agreements among competitors may facilitate their joint acquisition of market power the ability to sustain higher prices than free competition would allow, without losing customers.

In addition, any market with inflated prices induced by a horizontal agreement will rapidly attract new entrants, and they can easily restore prices to the competitive level.

The bill was designed to overrule the 1911 U.S. Supreme Court ruling in the Dr. Miles case (Dr. Miles v. John D. Park & Sons), in which the Court held that certain vertical resale price agreements substantially lessened competition as effectively as any horizontal agreement and were in violation of the Sherman Act.

One prominent feature is the extension of the possibility to recognise horizontal, vertical agreements and inter-branch agreements to all agriculture products covered by the CMO, as well as the extension of the possibility of contractual negotiations (joint negotiation) to olive oil, beef and arable crops.

Examples of horizontal price-fixing agreements include agreements to adhere to a price schedule or range; to set minimum or maximum prices; to advertise prices cooperatively or to restrict price advertising; to standardize terms of sale such as credits, markups, trade-ins, rebates, or discounts; and to standardize the package of goods and services included in a given price.

Economists generally agree that horizontal price-fixing agreements are bad for consumers.

Horizontal price-fixing agreements are also illegal under European Union (EU) competition law, where they are similarly subject to so-called hard-core restrictions.

A third argument against the prohibition of horizontal price-fixing agreements involves the social desirability of cross-subsidization of services for the poor.

In addition, there have been some concerns about the per se prohibition of horizontal price-fixing agreements in contexts in which it is difficult for consumers to judge the quality of goods or services on their own.

Each member of a horizontal price-fixing agreement has a strong incentive to defect, secretly offering lower prices to attract a greater share of customers.