When Janis tried to buy an airline ticket for her summer holiday, she couldn't find an airline that was offering a ticket to her destination for anything less than $500 round trip. In fact, all three airlines that flew to her destination offered the same fare, $510, for passengers seeking to visit that destination. Which aspect of pricing regulation might the airlines be in violation of?
1 answer
Based on the given information, the airlines might be in violation of price fixing. Price fixing refers to an illegal agreement among competing companies to set prices at a certain level, restricting competition and eliminating consumer choice. In this case, all three airlines offering the exact same fare for a specific destination indicates a lack of competition and a potential violation of price fixing regulations.