This review of the Great Electrical Conspiracy that spanned the length of the 1950’s will use sources that were published well after the events transpired and the following investigation as well as sources and reports that were published while or immediately after the conspiracy unfolded. The former will provide a more extensive overview of the facts in hindsight as well as analysis of the structural organizations of these types of cartels and how that influenced the maintenance of their collusion for a decade. The latter will provide further insight on the implications of the conspiracy on the government in terms of legislation dealing with corporations in the electrical equipment industry and further insight on the operations of such cartels …show more content…
This review contradicts Faulkner’s entry that describes successful price fixers in that, here, Andrews states that although these meeting took place, the conspirators did not wholly trust their co-conspirators and the meetings were often ineffective to the extent that not all parties agreed or were convinced that others would abide by the prices agreed to (Faulkner, 2013; Andrews, 1963). This is corroborated by the “Electrical Price Fixing Stirs Inquiry” article where several conspirators admit to participating in these meetings but disclose similar reservations about their effectiveness and the cooperation of other firms (“Electrical Price Fixing Stirs Inquiry,” 1961). Despite this, it is evident that the conspiracy did manage to artificially inflate prices for a length of several years which implies that in spite of suspicions disputes among conspirators, the cartel was able to maintain collusion and increase prices and profits for …show more content…
Department of Justice whereupon an investigation resulted in the imposition of fines amounting to two million dollars to the complicit companies as well as jail sentences for seven company executives and suspended jail sentences for twenty-three others implicated in the conspiracy (Faulkner, 2013). Finally, the Identical Bids Bill passed in 1961 required any sealed bids over ten thousand dollars to be reported by federal procurement officers to the Attorney General and that the party that placed the bid verify that they had not participated in any collusive activities during the process of determining their bid or disclosed their bids to third parties or competitors (“Electrical Price Fixing Stirs Inquiry,” 1961). It is important to note here that the resulting legislation governing corporations that engage in bidding for federal contracts outlined did not apply to foreign suppliers and foreign sourced contracts (“Electrical Price Fixing Stirs Inquiry,” 1961). This would enforce anti-trust laws in the United States but would do little to abate the incentives to engage in anti-competitive practices that included growing competition from foreign suppliers in the electrical equipment industry. Furthermore, it would be an interesting line of research to quantify the effect of foreign suppliers, and