there are seven “keys to success” for a cartel. What are they?

Solutions

Expert Solution

the factors which determine cartel success are a large variety of attributes which are inter dependent as well.

first, organizational structure of the cartel implies voting rights in the organization , distribution of power, capability of cartel to create barrier for trade, mechanism for detering by credible threats and detecting cheating practices.

secondly, traditional structural variables like concentration of demand, homogeneous cost and rate of technology are inter related.

thirdly, it depends on the exogeneous factors like government regulation, anti trust laws.

other factors are history related variables like learning curve or spillover effect on the organization which led to cartel design, startup cost of the cartel , reputation of its members.

Thus, both endogeneous and exogeneous factors are responsible for cartel stability and providing incentives and detering with strict punishment can have significant impact on cartel duration

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

What are some of the keys to success did a leader brings to his business?

1) What are at least 3 keys to achieving success through business communication? 2) What are...

1) What are at least 3 keys to achieving success through business communication? 2) What are at least 3 advantages of working in teams? 3) What are at least 3 challenges of working in teams?

‏a. What is a cartel? Why is OPEC considered a Cartel

Provide an example of cartel and explain what facilitated the formation of this cartel or what...

Provide an example of cartel and explain what facilitated the formation of this cartel or what made the Cartel break down.

Provide an example of cartel and explain what facilitated the formation of this cartel or what...

Provide an example of cartel and explain what facilitated the formation of this cartel or what made the Cartel break down.

1. What is a cartel? 2. Is a cartel legal in the U.S? 3. If a...

1. What is a cartel? 2. Is a cartel legal in the U.S? 3. If a cartel is illegal, do they sometimes form? 4. Once formed, is there an incentive to cheat on the cartel?

Pages 84-85 of the book list the keys to success for the implementation stage of strategic...

Pages 84-85 of the book list the keys to success for the implementation stage of strategic planning. Pick five(5) of these questions to explain in your own word. Why are they important? What happens if they're ignored? Below are the questions: 1. A well-defined strategic planning process. 2. Clear and visible executive support, sponsorship, and involvement. 3. An empowered strategic planning team. 4. Involvement of all levels of the organization (inclusive not exclusive approach). 5. Thorough analysis of internal and...

WHAT ARE THE DIFFERENCES BETWEEN PUBLIC KEYS AND PRIVATE KEYS IN TERMS OF ENCRYPTION METHODS AND...

WHAT ARE THE DIFFERENCES BETWEEN PUBLIC KEYS AND PRIVATE KEYS IN TERMS OF ENCRYPTION METHODS AND BITS WISE UNDERSTANDING?

Identify keys to success in this market for your company. Provide an overview of your company’s competitive advantage in this market.

Identify keys to success in this market for your company. Provide an overview of your company’s competitive advantage in this market. Identify the basis on which you will compete (e.g., cost leadership, differentiation, or focus) and/or value discipline (operational excellence, customer intimacy, product leadership).

Key Drivers/Benchmarking Objective: Learn and apply key driver analysis to identify keys to success and determine...

Key Drivers/Benchmarking Objective: Learn and apply key driver analysis to identify keys to success and determine firm’s performance relative to peers and high performers. Comparisons can be at the firm level (compare GM to Ford) and at the process level (compare phone service levels by Citibank vs Lands End) Identify the 3-4 key success drivers for your industry. Find benchmarking data source for each driver and, whenever, possible report the benchmark data. Note: Some benchmarking data must be purchased. Students...

Subjects