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Eichenwald, Kurt: The Informant

    It is the structure of a market that leads to possibilities of an anticompetitive nature. Only in a market where practices such as tacit collusion or cartelization are helpful and necessary, will it be unfeasible for formation and maintenance of such actions as are opposed in the antitrust laws. In the case of the lysine market, a cartel was formed in order to fix prices. The condition and structure of the lysine market made it very feasible to form such a cartel with relatively little effort. However, the market conditions were also such, that they would not allow for this type of formal price-setting simply because it was not necessary to either the producer or consumer; It was a scheme to make more profits quickly. The formation of a cartel under these market characteristics, would have enabled the cartel to gain overwhelming market power, and would not fail in the same sense as Chicago economists believe all cartels will eventually destroy themselves, or succumb to other market forces. The inherent structure of the market is the guiding force behind all of the lysine producers’ decisions as well as the government’s decision to intervene with the enforcement of antitrust lawsuits. It is necessary to now discuss the m

Approximate Word count = 1966
Approximate Pages = 8 (250 words per page double spaced)

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