The 1998 tobacco Master Settlement functioned as a government-enforced cartel: the big four tobacco companies raised cigarette prices more than enough to fund the roughly $15 million per state per year cash flow, and the agreement required any new entrant to pay in on a per-cigarette basis, thereby foreclosing the competitive entry that the price increases would otherwise have induced and making the cartel 'bulletproof.'
causalpending
Speaker
Bruce YandleEvidence Quote
“they raise their prices that's going to induce competitive entry of firms who had no part of this... well that attempt occurred that is C was induced and shut down immediately... basically shut down by the agreement itself so it's just... a Wonderful cartel”
Created: 6/15/2026, 9:20:30 AM
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