Jumpy Castles, Inc. One company, operating independently

Jumpy Castles, Inc. Bouncy Houses, LLC Now we have two companies making novelty apparati… Each will COMPETE by lowering prices or attacking the other in the media, etc. to gain market share

Jumpy Castles, Inc. Bouncy Houses, LLC Now we have FOUR companies making novelty apparati… This is getting hectic, and companies are slashing prices so much that they aren’t making any money What can they do? Death Trap Ent. Scary Funtimes Co.

They could merge and form one company… but who would be in charge? That could cause some big problems… Bouncy-Jumpy Traps Corp.

Jumpy Castles, Inc. Bouncy Houses, LLC Death Trap Ent. Scary Funtimes Co. Let’s Make a Deal!

Board of Directors, Jumpy Castles, Inc. Jumpy Castles, Inc. CEO Bouncy Houses, LLC CEO Death Trap Ent. CEO Scary Funtimes Co. CEO What’s wrong with this picture?

A Trust Simply put, businesses that usually compete agree to work together to control how much they make and how much they sell it for – They can charge as much as they want, since all the producers are charging the same price (no cheaper options) – Works well in industries of necessity, like food or transportation, or jumpy castles (things you can’t just stop buying)