Price book
Encyclopedia
In economics, a price book is a book in which the normal price
s of an item are listed for all suppliers. This allows one to determine the lowest price possible.
If a group of suppliers adhere to a particular price book, in other words, they set the prices of the price book artificially higher than the market clearing
price, then they are "fixing the price" of that item. This is illegal in most countries and is often found in oligopolies (industries with a few competitors (2-8), but not enough to make it a perfect market).
Price
-Definition:In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services.In modern economies, prices are generally expressed in units of some form of currency...
s of an item are listed for all suppliers. This allows one to determine the lowest price possible.
If a group of suppliers adhere to a particular price book, in other words, they set the prices of the price book artificially higher than the market clearing
Market clearing
In economics, market clearing refers to either# a simplifying assumption made by the new classical school that markets always go to where the quantity supplied equals the quantity demanded; or# the process of getting there via price adjustment....
price, then they are "fixing the price" of that item. This is illegal in most countries and is often found in oligopolies (industries with a few competitors (2-8), but not enough to make it a perfect market).