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Price fixing question.

I sell an item where i have 2 competitors selling the same item.

 

1 seller has his item priced right (where i would like to sell mine at) but nobody is buying from him because he's higher.

 

The other seller keeps under cutting me, sometimes by just 1 cent.  A day or two later, i'll do the same.  This goes back and fourth and our prices keep dropping and dropping each time we under cut each other to the point where we're hardly making any money. 

 

Based on sales, it seems like even a 1 cent different in price will sway buyers to go with the seller who has the lower priced item. 

 

My question is, would it be against ebay policy if i were to send this guy a polite message if he would like to come to some kind of "gentleman's agreement" to set a price and SHARE the sales ..... or would that be considered price fixing?

Sea Of Love - The Honeydrippers
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Price fixing question.

Yes, that's the definition of Price Fixing.

"Those who enter the arena unarmed or unprepared are quickly dispatched."
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Price fixing question.