This question <152|152> overall <144|146> Senco: <127-4|177>.

Question 265: What is the deeper reason that reciprocity agreements, i.e., agreements of the form: “I buy this from you if you buy that from me” are illegal in the U.S.?

[145] Senco: Unfair trading practices   Reciprocity agreements are illegal in the U.S. because they can lead to monopolies and other unfair trading practices.

Agreements between buyers and sellers tend to form close relationships between everyone involved. If these firms or individuals, are making agreements before anyone else has a chance to compete, then they are protecting their commodities from outside competition. With help of this protection, these firms can drive the competition out of business and establish a monopoly.

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