What is the key element in defining an agreement as price fixing?

The essence of price fixing lies in the collaboration among multiple brokers to establish prices collectively, rather than allowing market forces to dictate them. When brokers engage in this kind of collaboration, they are undermining the competitive market by agreeing on prices, which can artificially inflate them or lead to other anti-competitive practices. This is a violation of antitrust laws designed to promote fair competition.

While agreeing on a specific percentage increase can be an aspect of price fixing, it is the collaborative effort among brokers that characterizes the practice itself. Written contracts can suggest formal agreements but are not necessary for price fixing to occur, as informal agreements can also lead to similar outcomes. Setting fixed minimum standards does not inherently involve collusion to control prices; it may relate more to ensuring quality rather than manipulating price structures.

Thus, the critical factor in defining price fixing is the cooperation and collusion among brokers to set prices collectively.