Changes

Collusion in business is usually 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> although it can also be collusion between industries, such as manufactures and railroads in the case of Standard Oil to limit competition, or between internet service platforms and news organizations to deny [[InfoWars]] market access.

Collusion in business is usually 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> although it can also be collusion between industries, such as manufactures and railroads in the case of Standard Oil to limit competition, or between internet service platforms and news organizations to deny [[InfoWars]] market access.

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>

Typically, cartel 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.