Using cartels

Running cartel

Description

Using cartels involves forming alliances between independent organizations or businesses to coordinate actions such as pricing, production, or market allocation. The essential purpose is to control competition, stabilize markets, and increase collective bargaining power. This strategy remedies issues like market volatility, overproduction, or weak negotiating positions by enabling members to act in concert, thereby achieving outcomes unattainable individually. However, it often raises legal and ethical concerns due to its potential to restrict fair competition.