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dragonwriter's explanation is a good one.

Vertical price fixing is also rarely naked "price fixing" (IE directing a price to sell something at), it's usually resale price maintenance:

Two fake (I think!) examples:

Microsoft tells amazon they can't sell the xbox 360 for less than 399.99 (minimum resale price maintenance)

Microsoft tells amazon they can't sell the xbox 360 for more than 299.99 (maximum resale price maintenance)

Horizontal, on the other hand would look like this:

Microsoft and Sony agree that they will not let anyone sell the xbox360 or playstation 3 for less/more than 399.99.

Your local gas stations get together and agree they won't undercut each other's prices anymore.

(IE they've made a horizontal agreement not to compete on price)




> (IE they've made a horizontal agreement not to compete on price)

So it'd be a cartel-like behaviour?


In the sense that price fixing is one of many cartel behaviors, yes.

Cartels do plenty of other antitrust related behaviors too (bid rigging, gouging, etc)




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