Impacts of demand dynamics and consumer expectations on world oil prices

Thesis/Dissertation · Thu Jan 01 04:00:00 EST 1981

OSTI ID:6472923

Fromholzer, D R

This research contributes to the study of world oil prices. Models of rational producers and consumers are examined. Producers set prices or production quantities to maximize the value of their oil resources. Consumers purchase oil and other commodities to maximize utility. A market solution is a time path of prices and quantities that balances the choices of producers and consumers. A dynamic model of consumer demand was developed to address alternative pricing implications of consumer technology and objectives. Simplified demand models based on this dynamic model of consumer behavior are combined with simplified models of producer behavior. Sensitivity of pricing results to alternative assumptions about consumer price expectations and to the use of different functional forms for these models are tested. Two alternative models represent demand, using recent oil market data.

• OSTI ID: 6472923
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290100 -- Energy Planning & Policy-- Energy Analysis & Modeling
290200 -- Energy Planning & Policy-- Economics & Sociology
294002* -- Energy Planning & Policy-- Petroleum
CONSUMPTION RATES
DEMAND
ENERGY DEMAND
ENERGY MODELS
ENERGY SOURCES
ENERGY SUPPLIES
FOSSIL FUELS
FUELS
GLOBAL ASPECTS
INTEREST GROUPS
MATHEMATICAL MODELS
PETROLEUM
PRICES
PUBLIC OPINION
RESERVES
RESOURCES