Undergraduate Industrial Organization

Undergraduate Strategic Pricing, Innovation, and Entrepreneurship

Example of a Cartel in Action - The Lysine Cartel

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.

    --> versus a similar scene from ``The Informant.''

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 Industrial Organization

 

PhD International Trade