In the article “Cartels as Efficient Market Structures”, I feel that there was some information that I feel was unclear; throughout the article I felt that it was interpreting cartels to be bad for a business structure. There were a few implications where I thought that the cartels would be a good business tool for all positions in a monopoly or whatever the market structure contains.
Cartels in the market can be viewed as a positive aspect; every business can play their part in a business cartel. There is a great reason that any market would want a cartel in its own structure; it might give all businesses to have a chance to succeed in the economy. The rules that are brought up inside the cartel all businesses want to abide by; such rules could include prices and how many suppliers that the business has.
A great example that I can think of as a cartel is where I live and how the cable companies have their own areas to do business. In one area the business you can only have for your internet provider is Time Warner; that means that Comcast or any other company will not enter that area. Same goes for all other cable companies it is a written agreement that grows into the monopoly in a market structure. There are many different variables that may affect the cartel however.
With the cartels in a business it could make every company productive and every business will prosper because of the written agreements in the
market. However there can be competitive market structure within a cartel; if one business decides to break free from the monopoly the business may either suffer or prosper. This all depends on the different population that the business resides in and it also may have an effect negatively because of prices.
If the cartel bu ...