Price Fixing -or- Matt Damon is Your Guide to Antitrust Laws

I am not sure if this satisfies my R.A.D. criteria (relevant, applicable, and digestible), as it's unlikely that most people will find themselves in such a dilemma. However, as I've renewed my commitment to posting what I learned at school today–and today I had economics–let's shed some light on price fixing.

According to the Federal Trade Commission, price fixing is "an agreement (written, verbal, or inferred from conduct) among competitors that raises, lowers, or stabilizes price or competitive terms." You can read more about this in depth in the FTC Guide to the Antitrust Laws. But, I'll summarize–it's illegal, and doing it could land you in jail.

For a more entertaining look at the consequences of collusion, check out the true story The Informant, starring Matt Damon, about a lysine price-fixing conspiracy during the 1990s.