A cartel is a group of independent market participants who collaborate with each other and avoid competing with each other in order to improve their profits and dominate the market, seeking to limit competition, fix prices, and increase prices by creating artificial shortages through low production quotas, stockpiling, and marketing quotas. Cartel behavior can be legal or illegal, but jurisdictions frequently treat cartelization as anti-competitive and outlaw or curtail cartel practices, with anti-trust law targeting cartel behavior in markets.
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Cartel-style coordinated production planning among firms bears structural similarity to the centralized planning of a command economy, though a cartel is a voluntary arrangement among nominally independent private actors.
A cartel is an agreement among otherwise independent corporations to coordinate prices, output or market division rather than compete.
Sources
Cartel (Wikipedia)
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A cartel is a group of independent market participants who collaborate with each other and avoid competing with each other in order to improve their profits and dominate the market.
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