Four major insurance brokers agreed that when it came time for renewals of coverage with major customers that only one of them would submit a reasonable bid.The three others would submit a much higher price and thereby not be in the running for the renewal.The agreements of the insurance brokers:

Question

Quizplus · Accepted Answer

The agreement between the four major insurance brokers to only have one of them submit a reasonable bid and the other three submitting much higher prices for the same customer renewal is an example of horizontal trade restraint. This is because it involves an agreement among competitors at the same level of the supply chain (in this case, insurance brokers) to manipulate the market and limit competition for their own benefit.

Four Major Insurance Brokers Agreed That When It Came Time