Verified Document

Collusion Has No Place In Essay

Related Topics:

Collusion, therefore, has the impact of delivering higher prices to consumers than they would otherwise experience. In the long-run, this keeps all firms in the industry in business but in the short-run it is detrimental to consumers, so most forms of collusion are not allowed by regulators. The irony is that regulators are needed to maintain the "free" nature of the market -- to keep prices competitive. This is necessary when barriers to entry are high, as few new firms will enter an oligopolistic industry that is engaging in dangerous price wars.

There are examples of collusion in the world, however. OPEC is probably the biggest one. The cartel sets its output (around 1/3 of global oil output) in order to manage the level of total global output. This has the effect of managing the prices, as long as non-OPEC nations do not change their output...

Collusion among these nations is allowed because most of them are dependent on oil for the bulk of their foreign trade revenues. It is in the best interests of OPEC nations to maintain high prices and output stability, as these are beneficial to their countries. Other nations do not need to play along, but there are limits to how much other nations can expand capacity -- it is a slow and expensive process to do so. As a result, the cartel is able to persist with the collusion, and there is little that other countries can do to break this. There are no international laws against collusion, in part because many economies do not subscribe to the free market economy concept, either for philosophical reasons (Cuba, Venezuela) or because their economies lack sufficient diversification or size to excel in free market conditions.

Cite this Document:
Copy Bibliography Citation

Related Documents

Clean Hits : The NFL and
Words: 1618 Length: 5 Document Type: Research Paper

In that case, the NFL will, naturally, take the position that if they do not want to be included in a profit-making activity, the NFL will gladly take the profits without them. Whether this is truly collusion is perhaps the decision of the individual to whom the thought strikes; but certainly it seems to appear as collusion when in fact it is not by any means deliberately collusive. Players'

Intruder Has Gained Access to a Secure
Words: 936 Length: 3 Document Type: Essay

intruder has gained access to a secure place despite the said place having in place several security precautions such as code entry and CCTV. It is important to note that an intruder who succeeds in gaining access to a secure place can do just about anything he or she wants, from alteration to information theft to destruction. Analysis of the Situation While some organizational security precautions like code entry may make

Food Prices Over the Past
Words: 5030 Length: 17 Document Type: Research Proposal

In developing countries, consumers are more affected for two reasons. One is that consumers are more likely to buy raw ingredients. Without manufacturing entities to absorb some of the commodity price increases, consumers are left to absorb almost all of the increase (Ibid.). As a result, food prices have increased more in the developing world than in the developed world. Additionally, consumers in these countries already expend a significantly higher

De Beers Case Study Debeers
Words: 3253 Length: 8 Document Type: Research Proposal

This can only be accomplished by first focusing on the entire value chains' unmet needs, and given the monopolistic approaches of De Beers in this industry, channel partners and retailers will have many unmet process needs that once served could turn into a significant competitive advantage. The initial visits to each export market would need to be on a regular basis to build trust with each member of the

Market, Competition and Regulation the
Words: 2379 Length: 8 Document Type: Essay

Of course, this is a good thing for customers on short-term, but is negatively affects other companies on the market. This is because smaller competitors and especially those that intend to enter the market addressed by IBM find it at least difficult to provide product prices in accordance with those provided by IBM. These smaller companies do not have the ability of reducing their production or operating costs, which

RussiaGate Scandal
Words: 1097 Length: 4 Document Type: Essay

Today in Society A major event in today’s society is the RussiaGate scandal, which has been reported on the news for two years running. With the recent release of the Mueller probe, President Trump has declared victory—No Collusion, No Obstruction—and now many news media are doing damage control after basically accusing the president of colluding with Russia for the past two years (Collins & Jackson, 2019). From a sociological perspective, this

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now