Skip to main content

A mnemonic for the major factors influencing the likelihood of collusion

Buy Article:

$55.00 plus tax (Refund Policy)

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.
No Reference information available - sign in for access.
No Citation information available - sign in for access.
No Supplementary Data.
No Data/Media
No Metrics

Document Type: Research Article

Publication date: 2004-06-01

More about this publication?
  • Access Key
  • Free content
  • Partial Free content
  • New content
  • Open access content
  • Partial Open access content
  • Subscribed content
  • Partial Subscribed content
  • Free trial content
Cookie Policy
Cookie Policy
Ingenta Connect 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