CARTELLIZATION Meaning and
Definition
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Cartellization refers to the process of creating or establishing a cartel. A cartel is a group of independent organizations or companies that come together to collaborate, coordinate, and control a market by jointly regulating supply, setting prices, and dominating competition. Cartellization typically occurs in industries where a limited number of companies provide the same or similar goods or services.
The purpose of cartellization is to eliminate or restrict competition among the participating members, thereby exerting control over the market. This is achieved by creating agreements, often through formal contracts or informal arrangements, that dictate various aspects of market behavior, such as price fixing, production quotas, market sharing, and allocation of customers or territories. These agreements serve to manipulate market conditions in favor of the cartel members, allowing them to increase profits and maintain market power.
Cartellization can have significant impact on market dynamics, consumer choice, and pricing. It can lead to decreased competition, reduced innovation, and limited market access for new entrants. As a result, cartellization is often criticized for promoting anti-competitive practices and negatively affecting market efficiency and consumer welfare.
Due to its potential negative consequences, cartellization is usually subject to legal regulations and scrutiny in many jurisdictions. Authorities such as antitrust or competition commissions monitor and investigate cartel activities, enforcing laws that prohibit or limit such practices to protect fair competition, promote consumer welfare, and maintain market efficiency.
Common Misspellings for CARTELLIZATION
- xartellization
- vartellization
- fartellization
- dartellization
- czrtellization
- csrtellization
- cwrtellization
- cqrtellization
- caetellization
- cadtellization
- caftellization
- cattellization
- ca5tellization
- ca4tellization
- carrellization
- carfellization
- cargellization
- caryellization
- car6ellization
- car5ellization
Etymology of CARTELLIZATION
The word "cartellization" derives from the term "cartel", which originated from the Italian word "cartello" during the late 19th century. Originally, "cartello" referred to a written challenge to the public or a proclamation posted on a placard. This usage was later adopted in the business context to refer to an agreement or alliance formed between companies to control production levels, prices, or market sharing.
Through the process of derivation, the noun "cartel" was then transformed into the verb "cartelize". It describes the act of establishing or joining a cartel, collaborating with other companies to achieve control over a specific market. From "cartelize", the noun "cartellization" was formed, representing the process or result of creating a cartel or engaging in cartels within an industry.
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