What is an agreement to buy or sell a product at a fixed price, often among market participants?

The agreement to buy or sell a product at a fixed price among market participants is known as price fixing. This concept typically involves producers agreeing to set a specific price for their goods or services, rather than letting market forces determine the price. Price fixing can also refer to collaborations among competitors to maintain prices at a certain level, which is generally considered illegal in many jurisdictions due to its anti-competitive nature.

Understanding price fixing helps illuminate the dynamics of market competition and regulation. It contrasts with other concepts like warranties, which involve guarantees related to product quality and performance, rather than price agreements; loss leaders, which are pricing strategies to attract customers by selling products at low prices to boost sales of other items; and bonds, which represent a form of debt or investment, not a direct agreement between buyers and sellers about product pricing.

Thus, knowing what price fixing entails allows one to grasp its implications for market behavior and legal standards in economics.