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Line 1: − − Collusion in business is an agreement among members of a [[cartel]] in a particular industry not to compete in order to create artificial disincentives for new competitors.<ref>Or [[Barriers to entry]] into a market or industry.</ref> − − Typically, business collusion occurs when a group of large competitors, a cartel, divvy up [[market]] share among themselves to gain [[monopoly]] control,<ref>A cartel with monopoly control is sometimes referred to as an [[oligopoly]].</ref> and manipulate prices and profitability to make it impossible for a start-up competitor to gain market access. Thus, the public is denied the benefits of lower prices and improvements that come with time. It's also called "price rigging" or "unfair competition."<ref>Government sometimes has an incentive to favor Big Business and monopolistic trade practices because of the larger taxes revenues they create, and their ability to produce larger tax revenues faster in a new, unregulated industry. This tendency by the government to encourage unfair trade practices historically has been countered by populist movements.<br>This incentive only became bigger with passage of the Corporate Income Tax, a so-called "Progressive reform," that came after passage of the Sherman Anti-Trust Act.</ref> − − The [[OPEC]] cartel is an example of competitors in an industry colluding together to limit production and set prices. Each member agrees to a production quota which, cumulatively, sets the world price. If a member exceeds its production quota, it has the effect of driving down the world price and profitability of all members. If other members exceed their quota, a price war erupts from which some members may not survive. − − When the government grants protection or assents to collusion and monopoly control by not enforcing anti-Trust laws, it is referred to as "[[corporate cronyism]]." Line 22:
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'''Collusion''' refers to private conversations, agreements, and activities which are protected by privacy rights. It should not be confused with [[conspiracy]], which are conversations, agreements and activities with the intent to violate [[law]].
'''Collusion''' refers to private conversations, agreements, and activities which are protected by privacy rights. It should not be confused with [[conspiracy]], which are conversations, agreements and activities with the intent to violate [[law]].
==History of the term==
==History of the term==
==Business collusion==
==Business collusion==
Collusion in business is an agreement among members of a [[cartel]] in a particular industry not to compete in order to create artificial disincentives for new competitors.<ref>Or [[Barriers to entry]] into a market or industry.</ref>
Typically, business collusion occurs when a group of large competitors, a cartel, divvy up [[market]] share among themselves to gain [[monopoly]] control,<ref>A cartel with monopoly control is sometimes referred to as an [[oligopoly]].</ref> and manipulate prices and profitability to make it impossible for a start-up competitor to gain market access. Thus, the public is denied the benefits of lower prices and improvements that come with time. It's also called "price rigging" or "unfair competition."<ref>Government sometimes has an incentive to favor Big Business and monopolistic trade practices because of the larger taxes revenues they create, and their ability to produce larger tax revenues faster in a new, unregulated industry. This tendency by the government to encourage unfair trade practices historically has been countered by populist movements.<br>This incentive only became bigger with passage of the Corporate Income Tax, a so-called "Progressive reform," that came after passage of the Sherman Anti-Trust Act.</ref>
[[Adam Smith]] said, {{quotebox|"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a [[conspiracy]] against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed or would be consistent with [[liberty]] and [[justice]]. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary."<ref>https://www.econlib.org/library/Enc/Cartels.html</ref>}} Smith's statement is interesting in that it's critical of government for encouraging formation of lobbying trade groups to speak with one voice in regulatory matters, such as [[Big Pharma]], for example.
[[Adam Smith]] said, {{quotebox|"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a [[conspiracy]] against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed or would be consistent with [[liberty]] and [[justice]]. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary."<ref>https://www.econlib.org/library/Enc/Cartels.html</ref>}} Smith's statement is interesting in that it's critical of government for encouraging formation of lobbying trade groups to speak with one voice in regulatory matters, such as [[Big Pharma]], for example.
When the government grants protection or assents to collusion and monopoly control by not enforcing anti-Trust laws, it is referred to as "[[corporate cronyism]]."
===Tech company collusion===
===Tech company collusion===
This type of collusion is intended to limit competition and for monopoly control of the marketplace.
This type of collusion is intended to limit competition and for monopoly control of the marketplace.
===OPEC===
The [[OPEC]] cartel is an example of competitors in an industry colluding together to limit production and set prices. Each member agrees to a production quota which, cumulatively, sets the world price. If a member exceeds its production quota, it has the effect of driving down the world price and profitability of all members. If other members exceed their quota, a price war erupts from which some members may not survive.
===NFL owners===
===NFL owners===