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Definition: cartel from Dictionary of Energy

Economics & Business. a group of companies within the same industry who act in concert to reduce production and increase prices, in order to maximize the wealth of the group; e.g., the oil cartel known as OPEC (Organization of Petroleum Exporting Countries).


cartel

From The Columbia Encyclopedia
(kärtĕl'), national or international organization of manufacturers or traders allied by agreement to fix prices, limit supply, divide markets, or to fix quotas for sales, manufacture, or division of profits among the member firms. In that it often has international scope the cartel is broader than the trust , and in that it carries on manufacture it differs from the speculative corner or ring. The existence of cartels is in opposition to classic theories of economic competition and the free market, and they are forbidden by law in many nations. In Germany, however, by the outset of World War II, nearly all industry was controlled by cartels closely supervised by the government. Opponents of cartels have alleged that they have driven competing firms out of existence, reduced volume of trade, raised prices to consumers, and protected inefficient members from competition. Cartels were blamed for having benefited German aggression by furnishing markets, profits, and technical data to…
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Full text Article cartel

From Collins Dictionary of Business
a form of COLLUSION between a group of suppliers aimed at suppressing competition between themselves, wholly or in part. Cartels can take a number of forms. For example, suppliers may set up a sole selling agency which buys up their individual output at an agreed price and arranges for the marketing…
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Full text Article cartel

From The Columbia Encyclopedia
(kärtĕl'), national or international organization of manufacturers or traders allied by agreement to fix prices, limit supply, divide markets, or to fix quotas for sales, manufacture, or division of profits among the member firms. In that it often has international scope the cartel is broader than…
| 397 words
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Full text Article Cartels

From Gale Encyclopedia of U.S. Economic History
When businesses form cartels, they agree not to...
Cartels are groups of independently owned businesses that attempt to regulate pricing, production, and distribution of a good or service within an industry. To accomplish this, cartel members agree to act together rather than compete against each other. As a result, the cartel does not allow market…
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Full text Article Cartels

From Encyclopedia of World Trade: From Ancient Times to the Present Full text Article A-Z Entries
Ministers of the OPEC nations attend a summit of...
Formal cooperation among a group of independent firms, countries, or other parties in a given market to make joint price and output decisions, share markets, and thereby maximize profits. Agreements that result in price fixing, market sharing, output restrictions, and boycotts constitute examples of…
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Full text Article Cartel

From The AMA Dictionary of Business and Management
Association of independent companies that conspire to set the prices of products or services they own or offer. Cartels are illegal in most developed countries, although there are numerous ways in which the law can be circumvented. Different from an Oligopoly , a cartel represents Collusion rather…
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Full text Article cartel

From Encyclopedia of American Business History
A group of companies banding together to control the price of goods or services by regulating the supply. By regulating the supply, they are able to control prices and quantity. Usually, the members of a cartel are the largest producers in the industry, which may otherwise have few other members of…
| 350 words
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Full text Article cartel

From The Hutchinson Unabridged Encyclopedia with Atlas and Weather Guide
Agreement among national or international firms not to compete with one another. Cartels can be formed to fix prices by maintaining the price of a product at an artificially low level, to deter new competitors, or to restrict production of a commodity in order to maintain prices at an artificially…
| 234 words
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Full text Article cartel

From The New Penguin Business Dictionary
An arrangement between otherwise competing producers to act in collusion with the goal of raising prices and collective profits. A cartel attempts to create monopoly type conditions in what should be a competitive industry — with participants restraining the amount they produce in order to keep…
| 323 words
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Full text Article cartel

From Routledge Dictionary of Economics
An association of producers who agree to fix common prices and output quotas in an oligopolistic market. As the aim of a cartel is to prevent competition, there is a tendency for the producers to strive to maintain existing market shares, with the consequence that a firm can only increase its output…
| 174 words
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Full text Article cartel

From Collins Dictionary of Economics
Cartel. D is the industry demand curve,...
a form of COLLUSION between a group of suppliers aimed at suppressing competition between themselves, wholly or in part. Cartels can take a number of forms. For example, suppliers may set up a sole selling agency that buys up their individual output at an agreed price and arranges for the marketing…
| 593 words , 1 image
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