Definition for Difference between revisions of "Cartel"
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| − | A cartel is a group of firms that cooperate with each other to set prices higher than they would if they competed with each other. Explicit price fixing is illegal in the United States, so cartels are difficult to maintain. They are also difficult to maintain because each firm in the cartel has an incentive to cheat on the arrangements made by the cartel. | + | 1) A cartel is a group of firms that cooperate with each other to set prices higher than they would if they competed with each other. Explicit price fixing is illegal in the United States, so cartels are difficult to maintain. They are also difficult to maintain because each firm in the cartel has an incentive to cheat on the arrangements made by the cartel. |
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| + | 2) A cartel is an association of producers whose purpose is to control supply and prices. | ||
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| + | 3) An organization of buyers and sellers, capable of manipulating price and/or supply. | ||
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| + | [[Category:Economics]] [[Category:Business]] | ||
Latest revision as of 15:15, 9 November 2017
1) A cartel is a group of firms that cooperate with each other to set prices higher than they would if they competed with each other. Explicit price fixing is illegal in the United States, so cartels are difficult to maintain. They are also difficult to maintain because each firm in the cartel has an incentive to cheat on the arrangements made by the cartel.
2) A cartel is an association of producers whose purpose is to control supply and prices.
3) An organization of buyers and sellers, capable of manipulating price and/or supply.