... at P1 (at which Q1 will be demanded). After having agreed on the cartel price, the members may compete against each other using non-price competition to raise market share. Alternatively, they may agree to divide the market between them, where each member would be given a quota which most likely to be set accordingly to their current market share.4 In many countries cartels are illigal, because ther are seen by the goverments as a means of driving up prices and profits. The most well-known cartel is OPEC - the Organisation of Petrolium Exporting countires ( in some sourses: Oil Producing and Exporting Countries). Attempts to from cartels in cooper, tin, baixite, phosphates, rubber, tropical timber, coffee, tea, cocoa and bananas have not been succesful. A successful cartel needs to operate in a market dominated by a few producers. Collusion is much harder as well if the product is not standardised and ...

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