Cartel

A cartel is a type of organization created from a formal agreement between a group of producers or companies of goods or services to regulate supply in order to regulate or manipulate prices. Although competitors in the same industry, cartels seek to reduce competition with the use of supply reduction, price-fixing, collusive bidding, market carving, output restrictions, market allocation, and bid-rigging. Cartels have a negative effect on consumers as it often results in higher prices and restricted supply.