Cartels are formal organizations between manufacturers that agree to fix prices and production levels. They can be public or private. Cartels aim to control markets through price fixing and allocating territories, but often fail because the incentive for individual firms to cheat grows over time by lowering prices or overproducing. Notable examples include the aviation cartel between Indian airlines and the lysine cartel in the 1990s involving Archer Daniels Midland that was fined heavily for price fixing. In conclusion, while cartels seek to regulate competition, they are inherently unstable arrangements.