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Cartel |
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Description of Cartel. Explanation. |
Definition Cartel. Description.
A Cartel is a group of legally independent producers who act together to fix prices, to limit supply or to limit competition. Cartels are prohibited by antitrust laws in most countries; however informal and even some formal cartels continue to exist nationally and internationally.
A single legal entity that holds a monopoly position by this definition cannot be said to be a cartel, though it may be guilty of abusing said monopoly.
Examples of well-known formal cartels are the De Beers Diamond cartel, and by some accounts, the Organization of Petroleum Exporting Countries (OPEC).
Compare with: Horizontal Agreement | Horizontal Merger | Horizontal Integration | Oligopoly | Vertical Agreement | Competitive Environment |
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End of description Cartel. An explanation. |
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