COMPETITION AND MARKETS

Competition and Markets

Competition and Markets

Cartels are associations of independent business firms or nations usually involved in the same industry. Their purpose is to regulate the production, pricing, and marketing of goods by their members. Cartels aim to increase market share. They have been particularly common in the mineral sector. In market economies such as the United States, cartels are carefully monitored because of possible collusion and price fixing. As a result, noncartel nations fear unfair comparative advantages. Some market analysts consider cartels as monopolistic and guilty of triggering price distortions in commodity trading. By forcing prices up collectively, ...