Term:
Recommended price
Definition:
In several industries, suppliers may recommend or suggest the price at which a product may be resold. In certain cases the supplier may indicate the "maximum" price for the product in order to discourage retailers from raising prices to increase their own margins and thus reduce total sales.
Domain:
Finance
Source:
Glossary of Industrial Organisation Economics and Competition Law, compiled by R. S. Khemani and D. M. Shapiro, commissioned by the Directorate for Financial, Fiscal and Enterprise Affairs, OECD, 1993
