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– Nelson Mandela

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Q What are the major public policy issues in pricing? Does Amazon practice predatory pricing or just good competitive marketing?

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The major issues in pricing within the channel are predatory pricing and pricing fixing. Price fixing can be caused by companies. Fixing of price occurs when it is decided by multiple firms in 1 shared market to price all services or products of theirs at a value that is the same. The aim of price fixing involves raising a product’s price in absence of reducing the consumers’ demand from any particular supplier. Fixing of price is not legal and punishments can be received by firms in case it is proved that occurrence of price fixing happened.