Editing Cartel (section)

== Types ==
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 a CAU (Contact, Agreement or Understanding).<ref>{{Cite journal|last=Jeffrey|first=R|title=Cartels, Concerns and Trusts|journal=The Oxford Handbook of Business History|publisher=Ontario 2001|pages=269–274|via=Oxford Univ. Pres, 2007}}</ref> Typologies have emerged to distinguish distinct forms of cartels:
* Selling or buying cartels unite against the cartel's customers or suppliers, respectively. The former type is more frequent than the latter.
* Domestic cartels only have members from one country, whereas international cartels have members from more than one country.<ref>{{Cite book|title=Regulating Competition: Cartel registers in the twentieth-century world|last1=Fellman|first1=Susanna|last2=Shanahan|first2=Martin|publisher=Routledge|year=2015|isbn=9781138021648|location=London|pages=224}}</ref> There have been full-fledged international cartels that have comprised the whole world, such as the international steel cartel of the period between World War&nbsp;I and&nbsp;II.
* Price cartels engage in [[price fixing]], normally to raise [[price]]s for a commodity above the competitive price level. The loosest form of a price cartel can be recognized in [[tacit collusion]] (implicit collusion), wherein smaller enterprises individually devise their prices and market shares in response to the same market conditions, without direct communication, resulting in a less competitive outcome. This type of collusion is generally legal and can achieve a monopolistic outcome.<ref>{{Cite journal|date=2014-03-01|title=Implicit collusion in non-exclusive contracting under adverse selection|url=https://www.sciencedirect.com/science/article/abs/pii/S0167268113003119|journal=Journal of Economic Behavior & Organization|language=en|volume=99|pages=85–95|doi=10.1016/j.jebo.2013.12.013|issn=0167-2681|last1=Han|first1=Seungjin}}</ref>
* Quota cartels distribute proportional shares of the market to their members.
* Common sales cartels sell their joint [[Output (economics)|output]] through a central selling agency (in [[French language|French]]: ''[[wikt:comptoir|comptoir]]''). They are also known as [[syndicate]]s (French: ''syndicat industriel'').
* Territorial cartels distribute districts of the market to be used only by individual participants, which act as [[monopolist]]s.
* Submission cartels control offers given to [[Tender offer|public tenders]]. They use [[bid rigging]]: bidders for a tender agree on a bid price. They then do not bid in unison, or share the return from the winning bid among themselves.<ref>John M. Connor and Dan Werner. Variation in Bid-Rigging Cartels' Overcharges: SSRN Working Paper No.&nbsp;3273988. (October 27, 2018). [http://ssrn.com/abstract=3273988%7CAbstract].</ref>
* Technology and [[patent]] cartels share knowledge about technology or science within themselves while they limit the information from outside individuals.
* Condition cartels unify [[contractual term]]s – the modes of [[payment]] and delivery, or [[warranty]] limits.
* [[Standardization]] cartels implement common standards for sold or purchased products. If the members of a cartel produce different sorts or grades of a good, conversion factors are applied to calculate the value of the respective output.
* [[Compulsory cartel]]s, also called "forced cartels", are established or maintained by external pressure. Voluntary cartels are formed by the free will of their participants.