A Cartel Turns Legit

Those of you who asked about the relationship between Economics, the law, and Marketing, will find this New York Times article appealing. DeBeers, one of the largest cartels, began a shift in the late 1990s from a cartel to a marketing cooperative. The firm argued that the value of its brand, which will talk about later in the course, exceeded its sales revenue. In other words, DeBeers could make more money as a label for quality diamonds than engaging in the process of mining and selling diamonds.

In its effort to become a marketing firm, the company has been settling various lawsuits filed by the US government. These suits involved various violations of the Sherman antitrust Act.