1 Introduction

Abstract

This introductory chapter is a brief overview on cartels. It first defines what a cartel is in the modern sense and differentiates it from other forms of cooperation that do not typically apply to the European Union's (EU) competition rules. The chapter then considers the advantages and disadvantages of cartels. It describes a history in which cartels are tolerated and even encouraged, contrasting these instances with the modern view that horizontal cartel arrangements are generally very harmful to consumers and to markets. From there, the prevalence of cartels in modern economies is explored. Here, the chapter provides some model estimates for the prevalence of cartels, before discussing the broader implications of this study.