While following a competitor's lead in pricing is acceptable, there can be no signaling of prices to a competitor. This illegal practice, called _____, occurs when two or more competitors collaborate in setting prices.
A) indirect pricing
B) reference pricing
C) collaborative pricing
D) price fixing
E) price signaling

Question

Quizplus · Accepted Answer

Price fixing is the illegal practice of collaborating with competitors to set prices. It includes price signaling, in which competitors hint at their pricing intentions to each other without explicit agreements. Indirect pricing, reference pricing, and collaborative pricing are not terms used to describe illegal practices in pricing.

While Following a Competitor's Lead in Pricing Is Acceptable, There