Counting Beans

Price fixing requires collusion between two or more firms in an industry to agree to coordinate prices. In the late 80’s, there the Justice department brought charges against four top executives at bottling companies for price fixing. The executives agreed to set and adhere to prices published in their promotional letters. Bottling companies involved were the Mid-Atlantic Coca-Cola Bottling Co, Mid-Atlantic Coke of Silver Springs, and Athens Coca-Cola Bottling Co. The Justice Department ruled that there was no wrongdoing by the parent company, Coca Cola. Price-fixing is illegal and is a violation of the Sherman Act, these executives faced fines and jail time if convicted.