Cartel

A cartel is formed when a group of businesses work together to agree on prices, production, and marketing. Although a cartel, a trust, and a monopoly are each slightly different in their specific formation, they all have similar effects: to reduce competition and, as a result, allow the producers to charge higher prices and provide inferior quality. As a result, cartels are often a target of antitrust laws.

OPEC (the Organization of Petroleum Exporting Countries) is one of the most famous examples of a cartel; OPEC’s strong control over oil prices during the 1970s is an excellent demonstration of the power of the cartel.