Base point pricing

Base point pricing is the system of firms setting prices of their goods based on a base cost plus transportation costs to a given market.Although some consider this a form of collusion between the selling firms (it lowers the ability of buying firms to gain a competitive advantage by location or private transportation), it is common practice in the steel and automotive industries. It allows firms to collude by simply agreeing on a base price.

Base point pricing

Base point pricing is the system of firms setting prices of their goods based on a base cost plus transportation costs to a given market.Although some consider this a form of collusion between the selling firms (it lowers the ability of buying firms to gain a competitive advantage by location or private transportation), it is common practice in the steel and automotive industries. It allows firms to collude by simply agreeing on a base price.