Antitrust 1 Prof. E. Fox Fall 2004 1 I. Introduction to Antitrust Law 4 a. General Background 4


How to Identify a Cartel in the Absence of a Concrete Agreement?



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How to Identify a Cartel in the Absence of a Concrete Agreement?

  1. What is a Cartel-Like Arrangement?


  • Why did the company engage in apparent cartel or price-raising behavior?

  • Make a better product? Joint-Venture? Block competitors from the market? Cartelize?

  • It is easier for cartels to form where there are:

  • Fewer the firms;

  • Industry standards (fewer additional terms for potential cartelists to agree upon); and

  • Barriers to entry

  • Conditions necessary for cartelization  Cartel + Factors

  • Are the members at this price? Have they excluded low cost firms?

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