The shortage is an official one created by cartels in order to increase prices and bring to the market their own contraband. The key is that competitors agree among themselves how the market will operate, rather than allowing competitive market forces to work. This may be in the form of agreed selling or buying; agreed minimum prices; agreed formula for pricing or discounting goods and services; agreed rebates, and allowances or credit terms. Cartels that damage the interests of consumers commit a very serious form of economic crime. However, identifying, detecting and fighting cartels are a difficult task that requires a combination of legal and economic competencies.

Source: Standard Digital October 04, 2016 05:48 UTC