Member-only story

Cartel Registers In The Twentieth Century World: Routledge Explorations In Economic History

Charles Reed

·10.5k Followers· Follow

Published in Regulating Competition: Cartel Registers In The Twentieth Century World (Routledge Explorations In Economic History 75)

5 min read

1.1k View Claps

69 Respond

Save

Listen

Cartels have played a significant role in the economic history of the twentieth century. They have been formed in a wide range of industries, from steel and chemicals to pharmaceuticals and automobiles. Cartels have been used to control prices, output, and market share. They have also been used to stifle innovation and competition.

The study of cartels has a long history. However, it is only in recent years that scholars have begun to explore the role of cartels in the twentieth century world. This volume brings together leading scholars in economic history to examine the formation, operation, and impact of cartels in a wide range of industries and countries.

Regulating Competition: Cartel registers in the twentieth century world (Routledge Explorations in Economic History 75)

Regulating Competition: Cartel registers in the twentieth-century world (Routledge Explorations in Economic History Book 75)

by Julie Mulhern

4.8 out of 5

Language	:	English
File size	:	2199 KB
Text-to-Speech	:	Enabled
Screen Reader	:	Supported
Enhanced typesetting	:	Enabled
Word Wise	:	Enabled
Print length	:	330 pages

The book is divided into three parts. The first part examines the causes of cartel formation. The second part examines the factors that determine the success or failure of cartels. The third part examines the impact of cartels on economic growth, innovation, and consumer welfare.

Causes of Cartel Formation

There are a number of factors that can lead to the formation of cartels. These factors include:

* High fixed costs: Industries with high fixed costs are more likely to form cartels because it is difficult for new firms to enter the market. * Low barriers to entry: Industries with low barriers to entry are more likely to form cartels because it is easy for new firms to enter the market and undercut the prices of existing firms. * Homogeneous products: Industries with homogeneous products are more likely to form cartels because it is difficult for consumers to differentiate between the products of different firms. * Government support: Governments may support the formation of cartels in order to protect domestic industries or to promote economic stability.

Factors Determining the Success or Failure of Cartels

Once a cartel has been formed, there are a number of factors that can determine its success or failure. These factors include:

* The number of firms in the cartel: The larger the number of firms in the cartel, the more difficult it is to reach agreement on prices, output, and market share. * The degree of product differentiation: The more differentiated the products of the firms in the cartel, the easier it is for firms to cheat on the cartel agreement. * The level of government enforcement: The more vigorously the government enforces antitrust laws, the less likely it is that cartels will be successful.

Impact of Cartels on Economic Growth, Innovation, and Consumer Welfare

The impact of cartels on economic growth, innovation, and consumer welfare is complex. Cartels can have both positive and negative effects.

On the positive side, cartels can lead to increased stability in prices and output. This can be beneficial for both consumers and producers. Cartels can also promote innovation by providing firms with the resources to invest in research and development.

On the negative side, cartels can lead to higher prices and lower output. This can harm consumers and producers alike. Cartels can also stifle innovation by preventing new firms from entering the market.

The overall impact of cartels on economic growth, innovation, and consumer welfare is difficult to assess. It is likely that the impact varies depending on the specific industry and country in which the cartel is operating.

Cartels have played a significant role in the economic history of the twentieth century. They have been formed in a wide range of industries and countries. Cartels have both positive and negative effects on economic growth, innovation, and consumer welfare. The overall impact of cartels is difficult to assess and likely varies depending on the specific industry and country in which the cartel is operating.

Regulating Competition: Cartel registers in the twentieth-century world (Routledge Explorations in Economic History Book 75)

by Julie Mulhern

4.8 out of 5