Economics of Industrial Organization (ECON40580)

Syllabus

Blackboard


Cartels - The Lysine Cartel in Action
1. Showing disdain for customers and antitrust enforcement.
2. Telephone call from ADM Headquarters.
3. Using Trade Association to cover conspiracy.
4. Cartel members fix prices on a global basis.
5. Cartel members allocate worldwide sales volumes.
6. Co-conspirator threatens retaliation if others fail on the agreement.
7. Compensation scheme (side payments) to end cheating incentives.
8. Conspirators report year-end sales "right on target".

 

PhD International Trade