A term to describe a number of companies banded together with the object of monopolizing a particular market and carving it up so that each company has an agreed area of operation. Price competition is eliminated as selling prices for the particular products arc fixed centrally. Cartels are outlawed by the U.K. and the U.S.A. on the grounds that they are by definition monopolies not in the public interest. They were fairly common in Germany between the two world wars and the term is generally associated with that country.
|Reference: The Penguin Business Dictionary, 3rd edt.|