What type of pricing tactic is being used when several airlines agree to charge the same fare for a single route?
A) horizontal price fixing
B) vertical price fixing
C) horizontal price discrimination
D) vertical price discrimination
E) loss leader pricing

Question

Quizplus · Accepted Answer

Horizontal price fixing occurs when competitors agree to charge the same price for a product or service, which eliminates competition and can result in higher prices for consumers. This is exactly what is happening in the scenario where several airlines agree to charge the same fare for a single route.

What Type of Pricing Tactic Is Being Used When Several