This document discusses cartels, including what they are, different types, how they can succeed or fail, and their impact. A cartel is a formal agreement between producers to regulate supply and prices in order to maximize profits. They aim to increase profits by fixing prices, limiting supply, or other means. While cartels can benefit members by avoiding price competition, they often fail due to cheating or lack of cooperation between firms and create inefficiencies in the market. The only legal cartel is OPEC, which restricts oil production through quotas.

2.  What is cartel ?
 Types of cartel.
 Facts of cartel.
 How cartel fail.
 How cartel success.
 How cartels causes inefficiencies in the market.
 Cheating.
 Market sharing cartel.
 OPEC.
 Conclusion.

3.  A cartel is an organization created from a
formal agreement between a group of
producers of a good or service to regulate
supply in order to regulate or manipulate
prices.
 A group of parties ,nations or factions united in
a common cause.

4. Agreement between different parties
Cartel

5. Maximum profit Source of power

formerly independent
companies who overtly
agree to work together.

Objectives of cartels are
to increase their profits
or to stabilize market
sales . They do this by
fixing the price of goods,
by limiting market supply
or by other means.

6.  Cartels are created when a few large producers
decide to co-operate with respect to aspects of
their market. Once formed, cartels can fix
prices for members, so that competition on
price is avoided. ... Restricted output –
members may agree to limit output onto the
market, as with OPEC and its oil quotas.

7. Public cartel
Depression
Crisis
cartel
Private cartel

8. Firm’s don’t cooperate due to
lack of trust
Produce extra output
Firm’s cheat

9. Cheating can be detected and prevented
Low organizational cost
Cartel should have complete market control
Low expectation for serve government

10.  High entry barriers
 when the country’s sovereignty is at
stake.
 when one of the members has complete
control over the market.
 Less number of competitors drives the
market prices .

12.  Provides monopoly
 Products can be sold at higher margins
 The cost of advertising is reduced
 Production efficiency.
 Reasonable margin.
 Big savings.
 No individual role

13.  Individual monopolies affect disposable
incomes of customers.
 Create Inefficiencies in the market
 full regulation over the member
 No motivation
 Demand will fluctuate
 The individual members are not able to scale up
 The distribution of profits is decided by the central agency
of the cartel.

14. Protected by US OPEC 12 PARTNERS
 OPEC the world Largest
cartel
 Mechanism for
implementing
production restriction

15. PSMA
 Pakistani sugar mill
association
 Create an illegal
monopoly
 Enforce high level of
fake prices for sugar

16.  Cartel is a market type structure
 Cartel is illegal
 The only legal cartel in the world is OPEC
 Cartel mostly fail because firms don’t cooperate
due to lack of interest

17.  Cartel agreements are unstable
 Once a cartel broken, it may incentive to
reform or return in old condition
 Cartel do not abolish competition but
regulate it.
 Cartel is not much beneficial for customer or
household.