Skip to main content

A mnemonic for the major factors influencing the likelihood of collusion

Buy Article:

$53.17 plus tax (Refund Policy)

Abstract:

In the typical industrial organization textbook and class, and in the courtroom, numerous factors are identified as providing a predisposition to a cartel. These factors include cost differences, product differentiation, number of firms, technology, growth of the industry, elasticity, frequency of sales, number and size distribution of sellers and buyers, discount rate, type of competition, vertical integration, cost ratio, imports, sealed bidding, social structure and track record, future expectations, recognition of interdependence, announcements and exchanges of economic information, multimarkets, etc. There are many factors to keep in mind. Fortunately, the accumulated theoretical and empirical work on collusion suggests that we can, for all practical purposes, focus on the factors contained in the mnemonic word CARTEL. The key factors are: Concentration, Additional, Revenue, Talk, Entry, Likeness.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/0003684042000246722

Publication date: June 1, 2004

More about this publication?
routledg/raef/2004/00000036/00000010/art00002
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more