This article explains price fixing and provides a few examples. Although it is a little dated, it is valuable background to a story still in the news — Loblaw’s revelation that they had been fixing the price of a wide range of packaged bread products for 14 years until 2015 in what they said was an industry wide conspiracy.
Appropriate Subject Area(s):
Marketing, law, retail, pricing
Key Questions to Explore:
- Why do companies attempt to fix prices?
Introduction to lesson and task:
Students learn what price fixing is and why companies do it.
Action (lesson plan and task):
- Ask students what they think price fixing is.
- Using Think-Pair-Share, ask students to identify examples of price fixing that they are aware of for certain and some that they suspect.
- Distribute the article for reading.
- Using Think-Pair-Share again, have students discuss the difference between their own thinking and the practice of price fixing outlined in the article.
Consolidation of Learning:
- Have students write a reflective note on why a company would choose to engage in price fixing.
- Students understand the concept of price fixing and the consequences attached to it.
- In pairs, have students prepare a diagram describing a price fixing scheme, including its impact on the company and its customers.