Cartel Enforcement Today: The Perils of the Economic Downturn

Abstract

These are dangerous times for corporate executives. In times of economic downturn and financial dislocation, the temptation for corporate executives to embrace a short-term fix to raise prices and allocate markets is almost irresistible. An historical review of economic downturns provides powerful testimony that the major global cartels, ranging from lysine and citric acid to vitamins and graphite electrodes, had their origins at moments of economic stress.