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Horizontal Agreements

Learn about agreements between competitors to restrain trade.

Transcript

In this lesson, we’ll learn about agreements between competitors to restrain trade. 

I.               Horizontal Agreements

Section 1 of the Sherman Act regulates horizontal agreements, that is, agreements formed by two or more competitors that restrain trade, also known as a cartel.

Cartels emerge when a market is oligopolistic. An oligopolistic market is one in which there are multiple competitors that...