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74-550: 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 the treatment and exchange of prisoners from

148-496: A Bayesian statistical paradigm. Later , economist Joseph Schumpeter argued that a Juglar cycle has four stages: Schumpeter's Juglar model associates recovery and prosperity with increases in productivity, consumer confidence , aggregate demand , and prices. In the 20th century, Schumpeter and others proposed a typology of business cycles according to their periodicity, so that a number of particular cycles were named after their discoverers or proposers: Some say interest in

222-519: 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

296-412: 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

370-462: A company stock's current earnings. Intellectual capital contributes to a stock's return growth. Unlike long-term trends, medium-term data fluctuations are connected to the monetary policy transmission mechanism and its role in regulating inflation during an economic cycle. At the same time, the presence of nominal restrictions in price setting behavior might impact the short-term course of inflation. In recent years economic theory has moved towards

444-404: A cycle that needed to be explained and instead viewing their apparently cyclical nature as a methodological artefact. This means that what appear to be cyclical phenomena can actually be explained as just random events that are fed into a simple linear model. Thus business cycles are essentially random shocks that average out over time. Mainstream economists have built models of business cycles based

518-488: A form of fluctuation. In economic activities, a cycle of expansions happening, followed by recessions, contractions, and revivals. All of which combine to form the next cycle's expansion phase; this sequence of change is repeated but not periodic. The explanation of fluctuations in aggregate economic activity is one of the primary concerns of macroeconomics and a variety of theories have been proposed to explain them. Within economics, it has been debated as to whether or not

592-516: A heterodox branch in economics until being systematized in Keynesian economics in the 1930s. Sismondi's theory of periodic crises was developed into a theory of alternating cycles by Charles Dunoyer , and similar theories, showing signs of influence by Sismondi, were developed by Johann Karl Rodbertus . Periodic crises in capitalism formed the basis of the theory of Karl Marx , who further claimed that these crises were increasing in severity and, on

666-553: 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

740-409: A leading case. As well-formed and compact – and easy to implement – statistical methods may outperform macroeconomic approaches in numerous cases, they provide a solid alternative even for rather complex economic theory. In 1860 French economist Clément Juglar first identified economic cycles 7 to 11 years long, although he cautiously did not claim any rigid regularity. This interval of periodicity

814-418: 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

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888-520: A network of free enterprises searching for profit. The problem of how business cycles come about is therefore inseparable from the problem of how a capitalist economy functions. In the United States, it is generally accepted that the National Bureau of Economic Research (NBER) is the final arbiter of the dates of the peaks and troughs of the business cycle. An expansion is the period from a trough to

962-445: A one period change, that is unusual over the course of one or two years, is often relegated to “noise”; an example is a worker strike or an isolated period of severe weather. The individual episodes of expansion/recession occur with changing duration and intensity over time. Typically their periodicity has a wide range from around 2 to 10 years. There are many sources of business cycle movements such as rapid and significant changes in

1036-423: A peak and a recession as the period from a peak to a trough. The NBER identifies a recession as "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production". There is often a close timing relationship between the upper turning points of the business cycle, commodity prices, and freight rates, which

1110-418: A recession or depression. This debate has important policy consequences: proponents of exogenous causes of crises such as neoclassicals largely argue for minimal government policy or regulation ( laissez faire ), as absent these external shocks, the market functions, while proponents of endogenous causes of crises such as Keynesians largely argue for larger government policy and regulation, as absent regulation,

1184-435: A solution. Statistical or econometric modelling and theory of business cycle movements can also be used. In this case a time series analysis is used to capture the regularities and the stochastic signals and noise in economic time series such as Real GDP or Investment. [Harvey and Trimbur, 2003, Review of Economics and Statistics ] developed models for describing stochastic or pseudo- cycles, of which business cycles represent

1258-433: 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,

1332-697: A type of fluctuation found in the aggregate economic activity of nations that organize their work mainly in business enterprises: a cycle consists of expansions occurring at about the same time in many economic activities, followed by similarly general recessions, contractions, and revivals which merge into the expansion phase of the next cycle; in duration, business cycles vary from more than one year to ten or twelve years; they are not divisible into shorter cycles of similar characteristics with amplitudes approximating their own. According to A. F. Burns: Business cycles are not merely fluctuations in aggregate economic activity. The critical feature that distinguishes them from

1406-629: A war was the Panic of 1825 . Business cycles in OECD countries after World War II were generally more restrained than the earlier business cycles. This was particularly true during the Golden Age of Capitalism (1945/50–1970s), and the period 1945–2008 did not experience a global downturn until the Late-2000s recession . Economic stabilization policy using fiscal policy and monetary policy appeared to have dampened

1480-485: Is also commonplace, as an empirical finding, in time series models for stochastic cycles in economic data. Furthermore, methods like statistical modelling in a Bayesian framework – see e.g. [Harvey, Trimbur, and van Dijk, 2007, Journal of Econometrics ] – can incorporate such a range explicitly by setting up priors that concentrate around say 6 to 12 years, such flexible knowledge about the frequency of business cycles can actually be included in their mathematical study, using

1554-457: 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,

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1628-409: Is not stable over different time periods because of economic shocks , random fluctuations and development in financial systems . Ludvigson believes consumer confidence index is a coincident indicator as it relates to consumer's current situations. Winton & Ralph state that retail trade index is a benchmark for the current economic level because its aggregate value counts up for two-thirds of

1702-424: Is shown to be particularly tight in the grand peak years of 1873, 1889, 1900 and 1912. Hamilton expressed that in the post war era, a majority of recessions are connected to an increase in oil price. Commodity price shocks are considered to be a significant driving force of the US business cycle. Along these lines, the research in [Trimbur, 2010, International Journal of Forecasting ] shows empirical results for

1776-586: The United States , the National Bureau of Economic Research oversees a Business Cycle Dating Committee that defines a recession as "a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP , real income, employment, industrial production, and wholesale-retail sales." Business cycles are usually thought of as medium term evolution. They are less related to long-term trends, coming from slowly-changing factors like technological advances. Further,

1850-515: The article wizard to submit a draft for review, or request a new article . Search for " Cartello " in existing articles. Look for pages within Misplaced Pages that link to this title . Other reasons this message may be displayed: If a page was recently created here, it may not be visible yet because of a delay in updating the database; wait a few minutes or try the purge function . Titles on Misplaced Pages are case sensitive except for

1924-458: The price of oil or variation in consumer sentiment that affects overall spending in the macroeconomy and thus investment and firms' profits. Usually such sources are unpredictable in advance and can be viewed as random "shocks" to the cyclical pattern, as happened during the 2007–2008 financial crises or the COVID-19 pandemic . The first systematic exposition of economic crises , in opposition to

1998-414: 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,

2072-654: 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 was first used between German railway companies in 1846 to describe tariff- and technical standardization efforts. The first time

2146-523: 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 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

2220-667: The 19th and first half of the 20th century, specifically the period 1815–1939. This period started from the end of the Napoleonic wars in 1815, which was immediately followed by the Post-Napoleonic depression in the United Kingdom (1815–1830), and culminated in the Great Depression of 1929–1939, which led into World War II . See Financial crisis: 19th century for listing and details. The first of these crises not associated with

2294-541: The 19th century. ( See: Productivity improving technologies (historical) .) A table of innovations and long cycles can be seen at: Kondratiev wave § Modern modifications of Kondratiev theory . Since surprising news in the economy, which has a random aspect, impact the state of the business cycle, any corresponding descriptions must have a random part at its root that motivates the use of statistical frameworks in this area. There were frequent crises in Europe and America in

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2368-622: The Committee of the Association for the Relief of the Manufacturing Poor, both identified the cause of economic cycles as overproduction and underconsumption , caused in particular by wealth inequality . They advocated government intervention and socialism , respectively, as the solution. This work did not generate interest among classical economists, though underconsumption theory developed as

2442-519: 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

2516-475: 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

2590-717: 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

2664-561: The basis of which, he predicted a communist revolution . Though only passing references in Das Kapital (1867) refer to crises, they were extensively discussed in Marx's posthumously published books, particularly in Theories of Surplus Value . In Progress and Poverty (1879), Henry George focused on land 's role in crises – particularly land speculation – and proposed a single tax on land as

2738-697: The business cycle, notably the paradox of thrift , and today this previously heterodox school has entered the mainstream in the form of Keynesian economics via the Keynesian revolution. Mainstream economics views business cycles as essentially "the random summation of random causes". In 1927, Eugen Slutzky observed that summing random numbers, such as the last digits of the Russian state lottery, could generate patterns akin to that we see in business cycles, an observation that has since been repeated many times. This caused economists to move away from viewing business cycles as

2812-473: The business cycle. For almost 30 years, these economic data series are considered as "the leading index" or "the leading indicators"-were compiled and published by the U.S. Department of Commerce . A prominent coincident, or real-time, business cycle indicator is the Aruoba-Diebold-Scotti Index . Recent research employing spectral analysis has confirmed the presence of Kondratiev waves in

2886-430: The commercial convulsions of earlier centuries or from the seasonal and other short term variations of our own age is that the fluctuations are widely diffused over the economy – its industry, its commercial dealings, and its tangles of finance. The economy of the western world is a system of closely interrelated parts. He who would understand business cycles must master the workings of an economic system organized largely in

2960-659: The cycling of monetary systems. Since 1960, World GDP has increased by fifty-nine times, and these multiples have not even kept up with annual inflation over the same period. Social Contract (freedoms and absence of social problems) collapses may be observed in nations where incomes are not kept in balance with cost-of-living over the timeline of the monetary system cycle. The Bible (760 BCE) and Hammurabi 's Code (1763 BCE) both explain economic remediations for cyclic sixty-year recurring great depressions, via fiftieth-year Jubilee (biblical) debt and wealth resets . Thirty major debt forgiveness events are recorded in history including

3034-646: The debt forgiveness given to most European nations in the 1930s to 1954. There were great increases in productivity , industrial production and real per capita product throughout the period from 1870 to 1890 that included the Long Depression and two other recessions. There were also significant increases in productivity in the years leading up to the Great Depression. Both the Long and Great Depressions were characterized by overcapacity and market saturation. Over

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3108-453: The different typologies of cycles has waned since the development of modern macroeconomics , which gives little support to the idea of regular periodic cycles. Further econometric studies such as the two works in 2003 and 2007 cited above demonstrate a clear tendency for cyclical components in macroeconomic times to behave in a stochastic rather than deterministic way. Others, such as Dmitry Orlov , argue that simple compound interest mandates

3182-472: The economic crisis in former Eastern Bloc countries following the end of the Soviet Union in 1991. For several of these countries the period 1989–2010 has been an ongoing depression, with real income still lower than in 1989. In 1946, economists Arthur F. Burns and Wesley C. Mitchell provided the now standard definition of business cycles in their book Measuring Business Cycles : Business cycles are

3256-435: The economic cycle is framed in terms of refuting or supporting Say's law; this is also referred to as the " general glut " (supply in relation to demand) debate. Until the Keynesian revolution in mainstream economics in the wake of the Great Depression , classical and neoclassical explanations (exogenous causes) were the mainstream explanation of economic cycles; following the Keynesian revolution, neoclassical macroeconomics

3330-445: The economy to come to short run equilibrium at levels that are different from the full employment rate of output. These fluctuations express themselves as the observed business cycles. Keynesian models do not necessarily imply periodic business cycles. However, simple Keynesian models involving the interaction of the Keynesian multiplier and accelerator give rise to cyclical responses to initial shocks. Paul Samuelson 's "oscillator model"

3404-453: 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

3478-679: The economy. However, this was followed by stagflation in the 1970s, which discredited the theory. The second declaration was in the early 2000s, following the stability and growth in the 1980s and 1990s in what came to be known as the Great Moderation . Notably, in 2003, Robert Lucas Jr. , in his presidential address to the American Economic Association , declared that the "central problem of depression-prevention [has] been solved, for all practical purposes." Various regions have experienced prolonged depressions , most dramatically

3552-572: The existing theory of economic equilibrium , was the 1819 Nouveaux Principes d'économie politique by Jean Charles Léonard de Sismondi . Prior to that point classical economics had either denied the existence of business cycles, blamed them on external factors, notably war, or only studied the long term. Sismondi found vindication in the Panic of 1825 , which was the first unarguably international economic crisis, occurring in peacetime. Sismondi and his contemporary Robert Owen , who expressed similar but less systematic thoughts in 1817 Report to

3626-545: The first character; please check alternative capitalizations and consider adding a redirect here to the correct title. If the page has been deleted, check the deletion log , and see Why was the page I created deleted? Retrieved from " https://en.wikipedia.org/wiki/Cartello " Business cycle Heterodox Business cycles are intervals of general expansion followed by recession in economic performance. The changes in economic activity that characterize business cycles have important implications for

3700-698: The fluctuations of a business cycle are attributable to external (exogenous) versus internal (endogenous) causes. In the first case shocks are stochastic, in the second case shocks are deterministically chaotic and embedded in the economic system. The classical school (now neo-classical) argues for exogenous causes and the underconsumptionist (now Keynesian) school argues for endogenous causes. These may also broadly be classed as "supply-side" and "demand-side" explanations: supply-side explanations may be styled, following Say's law , as arguing that " supply creates its own demand ", while demand-side explanations argue that effective demand may fall short of supply, yielding

3774-893: The 💕 Look for Cartello on one of Misplaced Pages's sister projects : [REDACTED] Wiktionary (dictionary) [REDACTED] Wikibooks (textbooks) [REDACTED] Wikiquote (quotations) [REDACTED] Wikisource (library) [REDACTED] Wikiversity (learning resources) [REDACTED] Commons (media) [REDACTED] Wikivoyage (travel guide) [REDACTED] Wikinews (news source) [REDACTED] Wikidata (linked database) [REDACTED] Wikispecies (species directory) Misplaced Pages does not have an article with this exact name. Please search for Cartello in Misplaced Pages to check for alternative titles or spellings. You need to log in or create an account and be autoconfirmed to create new articles. Alternatively, you can use

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3848-488: The idea that they are caused by random shocks. Due to this inherent randomness, recessions can sometimes not occur for decades; for example, Australia did not experience any recession between 1991 and 2020. While economists have found it difficult to forecast recessions or determine their likely severity, research indicates that longer expansions do not cause following recessions to be more severe. According to Keynesian economics , fluctuations in aggregate demand cause

3922-414: 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

3996-475: 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 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 ,

4070-510: The market economy as due to exogenous influences, such as the State or its regulations, labor unions, business monopolies, or shocks due to technology or natural causes. Contrarily, in the heterodox tradition of Jean Charles Léonard de Sismondi , Clément Juglar , and Marx the recurrent upturns and downturns of the market system are an endogenous characteristic of it. The 19th-century school of under consumptionism also posited endogenous causes for

4144-486: The market will move from crisis to crisis. This division is not absolute – some classicals (including Say) argued for government policy to mitigate the damage of economic cycles, despite believing in external causes, while Austrian School economists argue against government involvement as only worsening crises, despite believing in internal causes. The view of the economic cycle as caused exogenously dates to Say's law, and much debate on endogeneity or exogeneity of causes of

4218-401: 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,

4292-508: 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

4366-574: The overall GDP and reflects the real state of the economy. According to Stock and Watson, unemployment claim can predict when the business cycle is entering a downward phase. Banbura and Rüstler argue that industry production's GDP information can be delayed as it measures real activity with real number, but it provides an accurate prediction of GDP. Series used to infer the underlying business cycle fall into three categories: lagging , coincident , and leading . They are described as main elements of an analytic system to forecast peaks and troughs in

4440-541: The period since the Industrial Revolution, technological progress has had a much larger effect on the economy than any fluctuations in credit or debt, the primary exception being the Great Depression, which caused a multi-year steep economic decline. The effect of technological progress can be seen by the purchasing power of an average hour's work, which has grown from $ 3 in 1900 to $ 22 in 1990, measured in 2010 dollars. There were similar increases in real wages during

4514-503: 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. cartello From Misplaced Pages,

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4588-498: The relation between oil-prices and real GDP. The methodology uses a statistical model that incorporate level shifts in the price of crude oil; hence the approach describes the possibility of oil price shocks and forecasts the likelihood of such events. Economic indicators are used to measure the business cycle: consumer confidence index , retail trade index , unemployment and industry/service production index . Stock and Watson claim that financial indicators' predictive ability

4662-701: 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 the Societas Communis Vendicionis ('Common Sales Society'). Laissez-faire (liberal) economic conditions dominated Europe and North America in

4736-478: 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

4810-864: The so-called recurrence quantification correlation index to test correlations of RQA on a sample signal and then investigated the application to business time series. The said index has been proven to detect hidden changes in time series. Further, Orlando et al., over an extensive dataset, shown that recurrence quantification analysis may help in anticipating transitions from laminar (i.e. regular) to turbulent (i.e. chaotic) phases such as USA GDP in 1949, 1953, etc. Last but not least, it has been demonstrated that recurrence quantification analysis can detect differences between macroeconomic variables and highlight hidden features of economic dynamics. The Business Cycle follows changes in stock prices which are mostly caused by external factors such as socioeconomic conditions, inflation, exchange rates. Intellectual capital does not affect

4884-482: The study of economic fluctuation rather than a "business cycle" – though some economists use the phrase 'business cycle' as a convenient shorthand. For example, Milton Friedman said that calling the business cycle a "cycle" is a misnomer , because of its non-cyclical nature. Friedman believed that for the most part, excluding very large supply shocks, business declines are more of a monetary phenomenon. Arthur F. Burns and Wesley C. Mitchell define business cycle as

4958-417: 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

5032-414: 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

5106-399: The welfare of the general population, government institutions, and private sector firms. There are many definitions of a business cycle. The simplest defines recessions as two consecutive quarters of negative GDP growth. More satisfactory classifications are provided by, first including more economic indicators and second by looking for more data patterns than the two quarter definition. In

5180-567: 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 the "exploitation of carriers". Cartels have existed since ancient times. Guilds in the European Middle Ages , associations of craftsmen or merchants of

5254-569: The world GDP dynamics at an acceptable level of statistical significance. Korotayev & Tsirel also detected shorter business cycles, dating the Kuznets to about 17 years and calling it the third sub-harmonic of the Kondratiev, meaning that there are three Kuznets cycles per Kondratiev. Recurrence quantification analysis has been employed to detect the characteristic of business cycles and economic development . To this end, Orlando et al. developed

5328-453: The worst excesses of business cycles, and automatic stabilization due to the aspects of the government 's budget also helped mitigate the cycle even without conscious action by policy-makers. In this period, the economic cycle – at least the problem of depressions – was twice declared dead. The first declaration was in the late 1960s, when the Phillips curve was seen as being able to steer

5402-403: Was largely rejected. There has been some resurgence of neoclassical approaches in the form of real business cycle (RBC) theory. The debate between Keynesians and neo-classical advocates was reawakened following the recession of 2007. Mainstream economists working in the neoclassical tradition, as opposed to the Keynesian tradition, have usually viewed the departures of the harmonic working of

5476-666: 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

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