Which type of cartel conduct involves agreeing to divide up markets?

Market sharing is a specific type of cartel conduct where businesses agree to divide markets among themselves, thereby limiting competition. This arrangement can include dividing markets geographically, by customer type, or by the types of products offered. By doing so, each participating company can avoid competing directly with one another in their designated segments, which often leads to higher prices and reduced choices for consumers.

This conduct is illegal in many jurisdictions, as it undermines market competition and harms consumers. The objective of market sharing is to stabilize prices and maximize profits for the participants by reducing competitive pressure.

In contrast, the other choices involve different forms of anti-competitive behavior. For example, bid rigging refers to a practice where competing parties collude to manipulate the bidding process, ensuring predetermined outcomes, while price fixing involves agreeing on prices to maintain a certain level, eliminating pricing competition. Output restrictions involve limiting the amount of product being produced to inflate market prices. Each type of conduct infringes upon fair competition but is categorized differently based on the specific actions taken by the involved companies.