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That's not price fixing tho?a business eg steggles started to sell their chickens cheaper to kfc than to other competitors, and if it were to be considered price fixing would both companies share equal blame?
i guess i worded it wrong i meant in the sense that since steggles is negotiating terms with kfc behind closed doors it allowes kfc to reduce prices and competition. or is it still not?That's not price fixing tho?
Well your right in the fact KFC will be able to have cheaper inputs,i.e chicken which enables them to reduce prices and then KFC would be more competitive.i guess i worded it wrong i meant in the sense that since steggles is negotiating terms with kfc behind closed doors it allows kfc to reduce prices and competition. or is it still not?
What Crisium said.What you're talking about is price discrimination
And yes the example you stated would be considered price discrimination because of product differentiation within the same market
Price discrimination is also used when the stores are geographically separated
It is considered as an unethical practice, however there are some (but very few) situations where price discrimination is allowed