ABSTRACT

The forces of competition may limit the ability of trade associations to reap the desired fruits of price fixing arrangements. Trade associations are rarely unaware of this. Many associations establish a network of secondary agreements, designed to support and to extend common or minimum price agreements. Secondary agreements of this variety may be designed to prevent inter-member competition from damaging the price arrangements; they may be designed, alternatively, to limit extra-association competition. This chapter provides a short study of agreements, examined by the Monopolies Commission, which might limit inter-member competition.