Songbirds silenced as Colombia fights wildlife trafficking

The metal doors of a shoebox-sized cage open up and a bird tagged #811 launches into a giant aviary. The palm-sized finch performs a midair pirouette, lands on a willow branch and curiously twitches its saffron-colored head ...

Researcher studies impact of drug-trafficking violence

A UMass Lowell researcher who analyzes the causes and impacts of violence fueled by drug trafficking has won critical acclaim for her work and is bringing a fresh understanding of these issues from the streets into the classroom.

Study offers new view of how cartels work

Suppose you were building a cartel—a group of business interests who coordinate to fix high prices that consumers must pay. How would you design it? Received economic wisdom says transparency among cartel members is crucial: ...

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Cartel

A cartel is a formal (explicit) agreement among competing firms. It is a formal organization of producers and manufacturers that agree to fix prices, marketing, and production. Cartels usually occur in an oligopolistic industry, where there is a small number of sellers and usually involve homogeneous products. Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies, and the division of profits or combination of these. The aim of such collusion (also called the cartel agreement) is to increase individual members' profits by reducing competition.

One can distinguish private cartels from public cartels. In the public cartel a government is involved to enforce the cartel agreement, and the government's sovereignty shields such cartels from legal actions. Inversely, private cartels are subject to legal liability under the antitrust laws now found in nearly every nation of the world.

Competition laws often forbid private cartels. Identifying and breaking up cartels is an important part of the competition policy in most countries, although proving the existence of a cartel is rarely easy, as firms are usually not so careless as to put collusion agreements on paper.

Several economic studies and legal decisions of antitrust authorities have found that the median price increase achieved by cartels in the last 200 years is around 25%. Private international cartels (those with participants from two or more nations) had an average price increase of 28%, whereas domestic cartels averaged 18%. Fewer than 10% of all cartels in the sample failed to raise market prices.[citation needed]

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