Please read Part I before you proceed.
Consider there is a dealer X, he wants to sell the goods to other dealers only. In order that to happen, he sells goods to customer at an inflated rate which is not close to what other dealers are providing. In such a scenario, the customer does not like to go to that particular shop to buy the goods. But whereas when the dealers ask him for goods he keeps his margin and sells the goods. This way, the dealer X has a shop and he is making money and he is making sure that others in the community are also making money. In such a co-operative environment, price fixing is bound to happen. Continue reading