Lesson plan
Decartelization
Decartelization is the transition of a national economy from monopoly control by groups of large businesses, known as cartels, to a free market economy. This change rarely arises naturally, and is generally the result of regulation by a governing body with the authority to decide what structures are permissible. A modern example of decartelization is the economic restructuring of Germany after the fall of the Third Reich in 1945. To truly understand the term "decartelization" requires familiarity with the term "cartel". A cartel is a formal (explicit) agreement among firms. Cartels usually occur in an oligopolistic industry (oligopoly), where there are a small number of sellers, and usually involve homogeneous products (see Homogeneity and heterogeneity). Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies (sales agents), and the division of property or profits or combination of these. The aim of such collusion is to increase individual member's profits by reducing competition. Competition laws forbid cartels.…
Article summary
Decartelization is the transition of a national economy from monopoly control by groups of large businesses, known as cartels, to a free market economy. This change rarely arises naturally, and is generally the result of regulation by a governing body with the authority to decide what structures are permissible. A modern example of decartelization is the economic restructuring of Germany after the fall of the Third Reich in 1945. To truly understand the term "decartelization" requires familiarity with the term "cartel". A cartel is a formal (explicit) agreement among firms. Cartels usually occur in an oligopolistic industry (oligopoly), where there are a small number of sellers, and usually involve homogeneous products (see Homogeneity and heterogeneity). Cartel members may agree on such matters as price fixing, total industry output, market shares, allocation of customers, allocation of territories, bid rigging, establishment of common sales agencies (sales agents), and the division of property or profits or combination of these. The aim of such collusion is to increase individual member's profits by reducing competition. Competition laws forbid cartels.…
Key claims
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Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
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Key claims and bibliography are generated from the same tracked claims and sources as the article page.