how does price fixing work, can’t anyone charge whatever they want for a product?
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If the market has only a few sellers of a product they can come together and decide to increase the price of their product. This works for as long as the sellers act on their convetion. For example there are only three orange farmers on the market. They are in competition and they try to outbid each other so they sell oranges with a very low profit margin at $1/orange. One day they come together and decide that they all should be asking $2/orange. They are now making much more profit. Of course, any one of them can break the deal and sell lower. But then the other two would do the same and they will be back at asking $1/orange. So there is a big incentive to keep the deal.
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