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In general, cartels are economically unstable in that there is a great incentive for members to cheat and to sell more than the quotas set by the cartel (see also Game theory). This has caused many cartels that attempt to set product prices to be unsuccessful in the long term . However, once a cartel is broken, the incentives to form the cartel return and the cartel may be re-formed. Publicly-known cartels that do not follow this cycle include the Organisation of Petroleum Exporting Countries ( OPEC) petroleum cartel and the De BeersDe Beers is a London and Johannesburg based diamond mining corporation. It has historically held a near total monopoly in the diamond trade. However, recently Israeli interests have captured 20% of the market. De Beers had been for many years under indict diamondAlternate meanings: Diamond (disambiguation Diamond is one of the natural allotropes of carbon (the main allotrope being graphite; see also allotropes of carbon). The hardest of naturally occurring materials, diamonds cut into multi-faceted shapes are amo cartel.
As its name implies, OPEC is organised by sovereignSovereignty is the exclusive right to exercise supreme authority over a geographic region or group of people, such as a nation or a tribe. Sovereignty is generally vested in a government or other political agency, though there are cases where it is held b stateThis article discusses states as sovereign political entities. For other meanings, see state (disambiguation). In international law and international relations, a state is a political entity possessing sovereignty, i. not being subject to any higher polits. It escapes antitrust enforcement in other jurisdictionThe term jurisdiction has more than one sense. Power of a court of law Jurisdiction is the power of a court to hear and decide a case before it. In most common law systems, jurisdiction is conceptually divided between jurisdiction over the subject matters by virtue of the doctrineDoctrine from Latin doctrina (compare doctor , means "a body of teachings" or "instructions", taught principles or positions, as the body of teachings in a branch of knowledge or belief system. The Greek analogy is the etymology of catechism. Often doctri of state immunity under publicPublic is of or pertaining to the people; belonging to the people; relating to, or affecting, a nation, state, or community; opposed to private; as, the public treasury. Public also refers to the general body of mankind, or of a nation, state, or communit international lawInternational law deals with the relationships between states, or between persons or entities in different states. It sub-divides into "public international law", and " private international law". When used without an adjective, "international law" genera.
Many trade organization s, especially in industries dominated by only a few major companies, have been accused of being fronts for cartels:
An example of a new international cartel is the one created by the members of the Asian Racing Federation and documented in the Good Neighbour Policy signed on September 1, 2003.