Misplaced Pages

#866133

42-637: The Dutch Coal Trade Union was a business cartel which operated in the Netherlands from 1893. Daniël George van Beuningen was one of the leading figures in the organisation. It represented the Rhenish-Westphalian Coal Syndicate in the Netherlands This article about mining is a stub . You can help Misplaced Pages by expanding it . This article about a business, industry, or trade-related organization

84-521: A CAU (Contact, Agreement or Understanding). Typologies have emerged to distinguish distinct forms of cartels: A survey of hundreds of published economic studies and legal decisions of antitrust authorities found that the median price increase achieved by cartels in the last 200 years is about 23 percent. Private international cartels (those with participants from two or more nations) had an average price increase of 28 percent, whereas domestic cartels averaged 18 percent. Less than 10 percent of all cartels in

126-413: A behavioural approach is often used to identify behavioural collusive patterns, to initiate further economic analysis into identifying and prosecuting those involved in the operations. For example, studies have shown that industries are more likely to experience collusion where there are fewer firms, products are homogeneous and there is a stable demand. Leniency programmes were first introduced in 1978 in

168-559: A larger impact in World War II. Because cartels are likely to have an impact on market positions, they are subjected to competition law , which is executed by governmental competition regulators . Very similar regulations apply to corporate mergers . A single entity that holds a monopoly is not considered a cartel but can be sanctioned through other abuses of its monopoly. Prior to World War II, members of cartels could sign contracts that were enforceable in courts of law except in

210-419: A leniency program: The application of leniency programme penalties varies according to individual countries policies and are proportional to cartel profits and years of infringement. However, typically the first corporation or individual to cooperate will receive the most reduced penalty in comparison to those who come forward later. The effectiveness of leniency programmes in destabilising and deterring cartels

252-421: A strong state that protects the right to property and enforces contracts. They may also support government interventions to resolve market failures. Ordoliberalism and various schools of social liberalism based on classical liberalism include a broader role for the state but do not seek to replace private enterprise and the free market with public enterprise and economic planning . A social market economy

294-435: A transition phase in which prices tend to rise, and end with a stationary phase in which price variance remains low. Indicators such as price changes alongside import rates, market concentration, time period of permanent price changes and stability of companies' market shares are used as economic markers to help supplement the search for cartel behaviour. On the contrary, when aiming to create suspicion around potential cartels,

336-473: Is a political and economic ideology that supports a market economy based on individualism and private property in the means of production . Adam Smith is considered one of the primary initial writers on economic liberalism, and his writing is generally regarded as representing the economic expression of 19th-century liberalism up until the Great Depression and rise of Keynesianism in

378-595: Is a stub . You can help Misplaced Pages by expanding it . Cartel The word cartel comes from the Italian word cartello , which means a "leaf of paper" or "placard", and is itself derived from the Latin charta meaning "card". The Italian word became cartel in Middle French , which was borrowed into English. In English, the word was originally used for a written agreement between warring nations to regulate

420-482: Is a much broader concept than fiscal liberalism, which is called fiscal conservatism or economic libertarianism in the United States. The ideology that highlighted the financial aspect of economic liberalism is called fiscal liberalism, which is defined as support for free trade . Economic liberalism opposes government intervention in the economy when it leads to inefficient outcomes. They are supportive of

462-440: Is considered opposed to planned economies and non-capitalist economic orders, such as socialism . As such, economic liberalism today is associated with classical liberalism , neoliberalism , right-libertarianism , and some schools of conservatism like liberal conservatism and fiscal conservatism . Economic liberalism follows the same philosophical approach as classical liberalism and fiscal conservatism. Developed during

SECTION 10

#1732782548867

504-462: Is evidenced by the decreased formation and discovery of cartels in the US since the introduction of the programmes in 1993. Some prosecuted examples include: Today, price fixing by private entities is illegal under the antitrust laws of more than 140 countries. The commodities of prosecuted international cartels include lysine , citric acid , graphite electrodes, and bulk vitamins . In many countries,

546-632: Is managed according to these precepts may be described as a liberal economy or operating under liberal capitalism . Economic liberals commonly adhere to a political and economic philosophy that advocates a restrained fiscal policy and a balanced budget through measures such as low taxes, reduced government spending, and minimized government debt. Free trade, deregulation , tax cuts , privatization , labour market flexibility , and opposition to trade unions are also common positions. Economic liberalism can be contrasted with protectionism because of its support for free trade and an open economy , and

588-510: The Age of Enlightenment , particularly by Adam Smith , economic liberalism was born as the theory of economics of liberalism, which advocates minimal interference by government in the economy. Arguments in favor of economic liberalism were advanced by Smith and others during the age of enlightenment, opposing feudalism and mercantilism . It was first analyzed by Adam Smith in An Inquiry into

630-532: The Societas Communis Vendicionis ('Common Sales Society'). Laissez-faire (liberal) economic conditions dominated Europe and North America in the 18th and 19th centuries. Around 1870, cartels first appeared in industries formerly under free-market conditions. Although cartels existed in all economically developed countries, the core area of cartel activities was in central Europe. The German Empire and Austria-Hungary were nicknamed

672-471: The division of labour , and the principle of individual initiative—this contributed to obscuring other aspects of the rich body of political liberalism to be found in Smith's work. For example, his work promoted the ideal that the everyday man could hold ownership of his own property and trade, which Smith felt would slowly allow for individuals to take control of their places within society. Economic liberalism

714-419: The price of oil . Drawing upon research on organizational misconduct, scholars in economics, sociology and management have studied the organization of cartels. They have paid attention to the way cartel participants work together to conceal their activities from antitrust authorities. Even more than reaching efficiency, participating firms need to ensure that their collective secret is maintained. “However,

756-728: The "exploitation of carriers". Cartels have existed since ancient times. Guilds in the European Middle Ages , associations of craftsmen or merchants of the same trade, have been regarded as cartel-like. Tightly organized sales cartels existed in the mining industry of the late Middle Ages, like the 1301 salt syndicate in France and Naples , or the Alaun cartel of 1470 between the Papal State and Naples. Both unions had common sales organizations for overall production called

798-528: The "lands of the cartels". Cartels were also widespread in the United States during the period of robber barons and industrial trusts . The creation of cartels increased globally after World War I . They became the leading form of market organization , particularly in Europe and Japan. In the 1930s, authoritarian regimes such as Nazi Germany , Italy under Mussolini , and Spain under Franco used cartels to organize their corporatist economies . Between

840-656: The 18th century, with origins in capitulations of the Ottoman Empire , dating back to the first commercial treaties signed with France in 1536 and taken further with capitulations in 1673, in 1740 which lowered duties to only 3% for imports and exports and in 1790. Ottoman free trade policies were praised by British economists advocating free trade such as J. R. McCulloch in his Dictionary of Commerce (1834), but criticized by British politicians opposing free trade such as Prime Minister Benjamin Disraeli , who cited

882-520: The 20th century. Historically, economic liberalism arose in response to feudalism and mercantilism . Economic liberalism is associated with markets and private ownership of capital assets . Economic liberals tend to oppose government intervention and protectionism in the market economy when it inhibits free trade and competition , but tend to support government intervention where it protects property rights , opens new markets or funds market growth, and resolves market failures . An economy that

SECTION 20

#1732782548867

924-535: The Nature and Causes of the Wealth of Nations (1776), which advocated minimal interference of government in a market economy , although it did not necessarily oppose the state's provision of basic public goods . In Smith's view, if everyone is left to his own economic devices instead of being controlled by the state, the result would be a harmonious and more equal society of ever-increasing prosperity. This underpinned

966-488: The Ottoman Empire as "an instance of the injury done by unrestrained competition" in the 1846 Corn Laws debate, arguing that it destroyed what had been "some of the finest manufactures of the world" in 1812. Historian Kathleen G. Donohue argues that classical liberalism in the United States during the 19th century had distinctive characteristics as opposed to Britain: "[A]t the center of classical liberal theory [in Europe]

1008-529: The US, before being successfully reformed in 1993. The underlying principle of a leniency program is to offer discretionary penalty reductions for corporations or individuals who are affiliated with cartel operations, in exchange for their cooperation with enforcement authorities in helping to identify and penalise other participating members. According to the Australian Department of Justice, the following 6 conditions must be met for admission into

1050-733: The United States. Before 1945, cartels were tolerated in Europe and specifically promoted as a business practice in German-speaking countries. In U.S. v. National Lead Co. et al. , the Supreme Court of the United States noted the testimony of individuals who cited that a cartel, in its versatile form, is a combination of producers for the purpose of regulating production and, frequently, prices, and an association by agreement of companies or sections of companies having common interests so as to prevent extreme or unfair competition. The first legislation against cartels to be enforced

1092-474: The best results for everyone ( spontaneous order ), provided that at least minimum standards of public information and justice exist, so that no one is allowed to coerce, steal, or commit fraud, and there should be freedom of speech and press. This ideology was well reflected in English law; Lord Ackner , denying the existence of a duty of good faith in English contract law, emphasised the "adversarial position of

1134-459: The economy. At the same time, American lawyers increasingly turned against trade restrictions , including all cartels. The Sherman act , which impeded the formation and activities of cartels, was passed in the United States in 1890. The American viewpoint, supported by activists like Thurman Arnold and Harley M. Kilgore , eventually prevailed when governmental policy in Washington could have

1176-415: The incentives to form a new cartel return, and the cartel may be re-formed. Publicly known cartels that do not follow this business cycle include, by some accounts, OPEC. Cartels often practice price fixing internationally. When the agreement to control prices is sanctioned by a multilateral treaty or protected by national sovereignty, no antitrust actions may be initiated. OPEC countries partially control

1218-701: The late 19th century and around 1945, the United States was ambivalent about cartels and trusts. There were periods of both opposition to market concentration and relative tolerance of cartels. During World War II , the United States strictly turned away from cartels. After 1945, American-promoted market liberalism led to a worldwide cartel ban, where cartels continue to be obstructed in an increasing number of countries and circumstances. Cartels have many structures and functions that ideally enable corporations to navigate and control market uncertainties and gain collusive profits within their industry. A typical cartel often requires what competition authorities refer to as

1260-402: The mean duration of discovered cartels is from 5 to 8 years and overcharged by approximately 32%. This distribution was found to be bimodal, with many cartels breaking up quickly (less than a year), many others lasting between five and ten years, and still some that lasted decades. Within the industries that have operating cartels, the median number of cartel members is 8. Once a cartel is broken,

1302-443: The move towards a capitalist economic system in the late 18th century and the subsequent demise of the mercantilist system. Private property and individual contracts form the basis of economic liberalism. The early theory of economic liberalism was based on the assumption that the economic actions of individuals are largely based on self-interest ( invisible hand ) and that allowing them to act without any restrictions will produce

Dutch Coal Trade Union - Misplaced Pages Continue

1344-515: The orchestrator, often the vendor with all information, typically remains unnoticed by antitrust authorities, raising questions about the culpability of unaware distributors.” The scientific analysis of cartels is based on cartel theory . It was pioneered in 1883 by the Austrian economist Friedrich Kleinwächter and in its early stages was developed mainly by German-speaking scholars. These scholars tended to regard cartels as an acceptable part of

1386-505: The parties when involved in negotiations". Initially, the economic liberals had to contend with arguments from the supporters of feudal privileges for the wealthy, traditions of the aristocracy and the rights of monarchs to run national economies in their own personal interests. By the end of the 19th century and the beginning of the 20th century, this opposition was largely defeated in the primary capital markets of Western countries. The Ottoman Empire had liberal free trade policies by

1428-522: The predominant belief is that cartels are contrary to free and fair competition, considered the backbone of political democracy. Maintaining cartels continues to become harder for cartels. Even if international cartels cannot be regulated as a whole by individual nations, their individual activities in domestic markets are affected. Unlike other cartels, export cartels are legal in virtually all jurisdictions, despite their harmful effects on affected markets. Economic liberalism Economic liberalism

1470-480: The sample failed to raise market prices. In general, cartel agreements are economically unstable in that there is an incentive for members to cheat by selling at below the cartel's agreed price or selling more than the cartel's production quotas. Many cartels that attempt to set product prices are unsuccessful in the long term because of cheating punishment mechanisms such as price wars or financial punishment. An empirical study of 20th-century cartels determined that

1512-418: The trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $ 100 million if a corporation, or, if any other person, $ 1 million, or by imprisonment not exceeding ten years, or by both said punishments, in the discretion of the court. In practice, detecting and desisting cartels is undertaken through

1554-532: The treatment and exchange of prisoners from the 1690s onward. From 1899 onwards, the usage of the word became generalized as to mean any intergovernmental agreement between rival nations. The use of the English word cartel to describe an economic group rather than international agreements was derived much later in the 1800s from the German Kartell , which also has its origins in the French cartel . It

1596-414: The use of economic analysis and leniency programmes. Economic analysis is implemented to identify any discrepancies in market behaviour between both suspected and unsuspected cartel engaged firms. A structural approach is done in the form of screening already suspicious firms for industry traits of a typical cartel price path. A typical path often includes a formation phase in which prices decline, followed by

1638-488: Was first used between German railway companies in 1846 to describe tariff- and technical standardization efforts. The first time the word was referred to describe a kind of restriction of competition was by the Austro-Hungarian political scientist Lorenz von Stein , who wrote on tariff cartels: There's no more one-sided perspective than the one saying that such rate-cartels are "monopoly cartels" or cartels for

1680-468: Was focused on promoting the idea of private ownership and trade; however, due to a growing awareness of concerns regarding policy, the rise of economic liberalism paved the way for a new form of liberalism, known as social liberalism . This promoted an accommodation for government intervention in order to help the poor. As subsequent authors picked up and promoted widespread appeal of a subset of Smith's economic theories to support their own work—of free trade,

1722-677: Was the Sherman Act 1890 , which also prohibits price fixing, market-sharing, output restrictions and other anti-competitive conduct. Section 1 and 2 of the Act outlines the law in regards to cartels, Section 1: Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Section 2: Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of

Dutch Coal Trade Union - Misplaced Pages Continue

1764-430: Was the idea of laissez-faire . To the vast majority of American classical liberals, however, laissez-faire did not mean no government intervention at all. On the contrary, they were more than willing to see government provide tariffs, railroad subsidies, and internal improvements, all of which benefited producers. What they condemned was intervention in behalf of consumers." In its initial formation, economic liberalism

#866133