Shepherds in the United States have launched a lawsuit against their employers for illegally suppressing their wages by acting as a cartel. The lawsuit claims that the employers violated the Sherman Act.—Reuters
Data
- According to Comparably.com, the average annual salary of a shepherd is $26,213.
- According to this Wall Street Journal article, there are around 1,500 shepherds in the United States.
- If a shepherd works a normal 2,000 hours a year, the hourly wage rate (rounded) is $13.
What is the Sherman Act?
The Sherman Antitrust Act of 1890 is an antitrust law—a law the regulates oligopolies and prevents them from becoming monopolies or behaving like monopolies. The Sherman Act made it a felony in the United States to create or attempt to create a monopoly or a cartel.
What is a monopsony?
A monopsony is a market in which there is a single buyer. A monopsony labor market has one employer. The Sherman Act has not been applied to monopsony before.
Why would sheep herding ranches form a cartel?
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Who wins and who loses when ranches are prevented from forming a cartel?
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