Which Of The Following Is A Condition That Helps Enforce A Cartel Agreement

21 décembre 2020

An oligopoly is a situation where some companies sell most or all goods in a market. Oligopolists earn their highest gains if they can come together as an agreement and act as a monopoly by reducing production and raising prices. Since each member of the oligopoly can individually benefit from the expansion of production, such an agreement often collapses – especially since explicit agreements are illegal. In addition to third-party fixers, other players in the cartel can also act as conciliators in the event of internal disagreement. One executive explained that most U.S. stock orders are placed through foreign exchange agents who are compensated by commissions. These commissions are generally calculated as a fraction of the dollar volume of the transaction and based on the number of shares related to the order or, in many cases, as a simple flat commission. Sometimes the broker`s commission will be a function of Bid-Ask`s spread; that is, the difference between the lowest price offered by a trader for security and the highest price an investor is willing to offer for that guarantee. Over-the-counter markets, and in particular stock markets, provide trading priority rules that determine which orders to fulfill or the order in which orders are filled. Priority rules are often based on transaction price, size, market time location, etc. For privacy reasons, the industry in which the agreements were made cannot be shown in Table 2.

The business took place in the following areas; construction (6); heavy industry (3); services (2); forestry (1); Waste management (1); Financial Services (1). Another problem raised in this study concerns the tension between the concealment of behaviour and coordination, as highlighted by the formalization of agreements through the minutes of meetings, accounting, etc. Communication and exchanges between antitrust firms are underestimated (Grout and Sonderegger 2005). Communication appears to play an important role in the stability of cartels, which may indicate that cartels will clearly engage in collusive practices, contrary to what might be expected of their need to conceal their cartel. This raises other issues related to the stability of agreements; For example, what will predominate – the need for coordination or the need to hide? For further investigation of these matters, it is recommended to interview insiders such as compliance officials, internal or external lawyers or company executives who are confronted with or involved in cartel violations. Empirical studies of cartels, using a social approach, criticize economic assumptions about behaviour as too simple (Parker 2012). The results of the draft Melbourne AgreementNote 6 show the discrepancies between the economic assumptions of competition policy and the social reality of business conduct (Parker 2012). Haines and Beaton-Wells 2012).