What is a cartel term paper

Cartels come together and establish rules that would guide them in setting prices and being secretive about them. A market with many producers would be difficult to control. A cartel has an organizational structure that is termed as a monopolistic structure. This is a form of structure that has very few producers, and at the same time, it is bound by very strict laws (Cerretano 1311). Members of a cartel have predefined agreements on how they should share in their profits and even hinder outside members from joining an already existing group of cartel. Cheating on matters to do with output agreements is the other issue that leads to breakdown of cartel groups. Cartel agreements usually are unstable because of the following reasons; disruption that is influenced by the entry of firms that do not subscribe to cartel form of organization in an industry-leading to competition.