OPEC behavior: a test of alternative hypotheses

Journal Article · Sun Dec 01 00:00:00 EST 1985 · Am. Econ. Rev.; (United States)

OSTI ID:6454449

Griffin, J M

Since interpretations of past and future oil price patterns depends on the model chosen, the author tests and compares alternative theories of OPEC as a first step in validating the choice on any one model. The results show that among OPEC countries, the partial market-sharing cartel model is the only model not rejected by at least some of the 11 members and gives the best explanation of production. In comparison with 11 non-OPEC countries, the competitive model could not be rejected for 10 of the 11 non-OPEC producers. This raises the question of why, if OPEC is a cartel, Friedman's predictions have not come true, and introduces new questions for future research. 19 references, 3 tables.

• Research Organization: Texas A and M Univ., College Station
• OSTI ID: 6454449
• Journal Information: Am. Econ. Rev.; (United States), Vol. 75:5
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
29 ENERGY PLANNING
POLICY AND ECONOMY
CARTELS
ECONOMIC ANALYSIS
OPEC
BEHAVIOR
PETROLEUM
PRICES
COMPARATIVE EVALUATIONS
ECONOMETRICS
OIL-EXPORTING COUNTRIES
ECONOMICS
ENERGY SOURCES
FOSSIL FUELS
FUELS
INTERNATIONAL ORGANIZATIONS
020700* - Petroleum- Economics
Industrial
& Business Aspects
294002 - Energy Planning & Policy- Petroleum
290200 - Energy Planning & Policy- Economics & Sociology