In order to avoid vicious price competition, enterprises in this industry wish to execute together the agreement price by establishing price alliance to prevent the declination of profits.

Then, by analyzing optimal pricing of price alliance, we get the incentive of forming a price .

This paper attempts to analyze the cause of the emergence of price alliance,define its nature,point out its social harms as well as introd uce the relevant law making and regul ations in foreign countries.

The British Motives for the Malayan Union Scheme;