15 nov 1900 ano - Legal Cartel Theory

Descrição:

This theory suggests that some firms seek government regulation to reduce price competition and ensure stable profits.

Holders of this view see practical politicians “supplying” regulation to local, regional, and national firms that fear the impact of competition on their profits or even on their long-term survival. While private cartels are illegal and unstable and often break down, the special attraction of a government sponsored cartel under the pretext of regulation is that it endures.

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