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2025 ISSUES
VOL. 3, ISSUE 1 (2018)
Cartel and competition law in India: An overview
Authors
Dr. Kavita Dhull
Abstract
Cartel behavior attacks the very heart of a “free economy” – the determination of price and output through competition and consumer preferences – diverts resources from their optimal use, and transfers wealth to those engaged in illegal activity. The uncertainty that exists in an oligopoly can lead to collusive behavior by firms. When this happens the existing businesses decide to engage in price fixing agreements or cartels. The aim of this is to maximize joint profits and act as if the market was a pure monopoly, which usually functions in secrecy. The members of a cartel, by and large, seek to camouflage their activities to avoid detection by the Commission. Perpetuation of cartels is ensured through retaliation threats. If any member cheats, the cartel members retaliate through temporary price cuts to take business away or can isolate the cheating member.
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Pages:1043-1045
How to cite this article:
Dr. Kavita Dhull "Cartel and competition law in India: An overview". International Journal of Academic Research and Development, Vol 3, Issue 1, 2018, Pages 1043-1045
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