In essence a price cartel price-fixing cartel.docVIP

 PAGE \* MERGEFORMAT 3 In essence a price cartel price-fixing cartel (Peking University Lin Yifu) price-fixing cartel and its essence is a price cartel, is an anti-competitive monopolistic and violate the principle of fair competition, but also with our ‘Price Law’, ‘Anti-Unfair Competition Law’ contrary. Since it is unfair competition, it has its hazards. It will mislead enterprises to escape market competition, no incentive to improve is not conducive to enterprises to improve management, the pursuit of technological advancement, objective and played a role in protecting what is backward, not conducive to survival of the fittest, the industry improving the overall quality and industry as a whole. There is no doubt that price-fixing cartel will greatly harm the interests of consumers, the actual is a trade monopoly to force consumers to high prices to support inefficient enterprises. Price cartel are no long-term success of foreign precedents, even if temporarily successful, will soon be contradictory, that is, the Organization of Petroleum Exporting Countries such as a strong organization reached an agreement to limit production price increase is also very difficult to achieve its objectives. June 9 after the formation of price-fixing cartel color TV, color TV, and no significant rebound in prices, the major shopping malls for their own interest, the limit does not ignore the price-fixing cartel provisions, but the price within the Union are also contradictions. It is expected that the color TV price-fixing cartel is doomed to failure. In addition to transnational organizations like the Organization of Petroleum Exporting Countries that act is no international law can stop things, in foreign countries, a country’s businesses engaged in price-fixing cartel is always secretive, and in our country even openly announced that, for this negative market competition, negative optimal allocation of resources, adverse technical and management level to improve the de