Gains to producers from the cartelization of exhaustible resources
Three cartels are examined to determine the potential gains to producers of forming cartels to market exhaustible resources by calculating both monopolistic and competitive price trajectories. Included in the study are the Organization of Petroleum Exporting Countries (OPEC), International Council of Copper Exporting Countries (CIPEC), and the International Bauxite Association (IBA). An optimal pricing model is described and applied to each of the cartels. Cartels are concluded to have an advantage for petroleum and bauxite, but not for copper. The smaller market shares of CIPEC and short-term lag adjustments seem to be the determining factors rather than resource exhaustion. Future research is needed to determine the effects of competitive firms changing their price expectations and cartel formation of consuming countries. 27 references.
- Research Organization:
- Massachusetts Inst. of Tech., Cambridge
- OSTI ID:
- 7100557
- Journal Information:
- Rev. Econ. Stat.; (United States), Journal Name: Rev. Econ. Stat.; (United States) Vol. 60:2; ISSN RECSA
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
290200* -- Energy Planning & Policy-- Economics & Sociology
290400 -- Energy Planning & Policy-- Energy Resources
ALUMINIUM ORES
BAUXITE
CARTELS
CHARGES
COMPETITION
COPPER
ECONOMIC ANALYSIS
ECONOMIC ELASTICITY
ECONOMIC IMPACT
ECONOMICS
ELEMENTS
ENERGY SOURCES
FOSSIL FUELS
FUELS
INTERNATIONAL COOPERATION
INTERNATIONAL ORGANIZATIONS
METALS
MINERALS
MONOPOLIES
OPEC
ORES
PETROLEUM
RESOURCE DEPLETION
RESOURCES
SUPPLY AND DEMAND
TRADE
TRANSITION ELEMENTS