A cartel, as I seemed to remember from my macroeconomics courses, is a group of enterprises and firms working together to limit competition and fix prices.
Why are drug cartels called cartels then, if they compete with each other and engage in gang wars?
In: Economics
Although the term is often used loosely, “drug cartel” is supposed to imply the same kind of monopolizing behavior: the cartel will use bargaining, threats or violence to seek exclusive control of the drug trade in an area. Gang wars are anti-competitive, intended to restrict the other group’s operations.
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