Monopoly paper / DeBeers monopol
From 2009 DeBeers output is not been as high as their biggest competitor Arlosa, is this
again strategy? On Table 3 we will see that DeBeers output is not as big, but their income is
larger than any other diamond company. This is probably due to good advertisement and
clever marketing.
For most of DeBeers existence they have had a unregulated monopoly situation where they
controlled market and they had pure monopoly. For this they used several methods like
example: new incomers did not make good profit or did not exist long, because they often
found "the market flooded". These shorts move De Beers brought out from their stockpiles
the particular kind of diamonds, which causes the price declines and loss of profits. This short
price-fixing was not allowed in America and 1994 begin court case, DeBeers owners were
afraid to go even America, because fear of arrest. In 2004 the court decided that DeBeers
where guilty,
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