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).
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Compare with:
Horizontal Agreement
| Horizontal Merger
| Horizontal Integration
| Oligopoly |
Vertical Agreement
| Competitive Environment
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Special Interest Group Leader
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