Although the theory of international cartels in not well developed in the literature, and every cartel is unique, some of these characteristics exist in each cartel. The economic literature provides specific characteristics for cartels. International Nuclear Information System (INIS) OPEC and other commodity cartels: a comparison The main intuition is that the cartel has an incentive to contract output and that the firms outside the cartel react to this by We show that incomplete cartels in quantity-setting oligopolies may increase welfare, without any effi ciencies or synergies being internalized by cartel formation. Market-induced rationalization and welfare enhancing cartels We show that incomplete cartels in quantity-setting oligopolies may increase welfare, without any efficiencies or synergies being internalized by cartel formation. Market-induced rationalization and welfare-enhancing cartels This reduces the entry threat, which implies that entry occurs less When cartels are prohibited, an incumbent monopolist can commit not to form a cartel should a new entrant enter the market. In this paper, we show that a policy that forbids cartels may benefit dominant firms, and hurt consumers. A challenge for business cartels is how to organise collective illegal activities without the use of formal price-fixing bid-rigging) in order to control market uncertainties and gain collusive profits, but face challenges in controlling the cartel itself. Managing Cartels: how Cartel Participants Create Stability in the Absence of law
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