in this paper, monopolistic behavior of opec, as the largest and most stable international organization between jan. 1973 to sep. 2008, is studied. for this purpose, fundamentals of game theory is used as a basis to come-up with a criterion to make a distinction between two market structures based on mutual dependency of institutions. then using such criterion, a regressive model based on expla...

Building on the political economy literature, we develop a conceptual model and apply it to explain the OPEC pricing behavior. We model OPEC as a cartel-of-nations where politician use two instruments: production quotas and domestic fuel consumption subsidies. Our model explains the wedge between domestic fuel prices in OPEC countries and in the rest of the world. The empirical estimates show t...

We estimate models that identify the economic and organizational determinants of crude oil production by individual OPEC nations. To clarify the interpretation of econometric results, we model production with specifications that resolve the statistical ordering of variables and estimate models with techniques that can cope with stochastic trends in the time series. We also analyze the short-run...

after second world war, demand for oil increased and in 1970s reached to its maximum growth. and naturally, providing this level of demand depended on much more import from opec, especially from middle eastern members. contemporaneous, in the early 1970s, some opec governments stopped granting new concessions and starting to claim equity participation in the existing concessions, with a few of ...

This paper estimates a dynamic model of the world oil market and tests whether OPEC countries colluded and whether non-OPEC countries behaved oligopolistically over the period 1970-2004. The model generates estimates of the shadow price of the resource with minimal functional form assumptions. Results support oligopolistic behavior among non-OPEC producers and collusion among OPEC producers exc...

This study estimates three hypotheses of OPEC behavior: market-sharing, target revenue and competitive model for the period 1980 to 2000 for all OPEC courtiers except Iraq. To examine co-integration relation for oil production, we use ADF test in OLS estimation. Also we use ARDL approach to examine these hypotheses and the long run relationship of them. Results indicate none of three hypotheses...

Abstract I n this paper, the behavior of the real oil price and OPEC and non-OPEC oil production during 1973-2013 are modelled. Interactions among OPEC, non-OPEC oil production, global oil consumption, and the real price of crude oil are estimated using a Structural VAR model (SVAR). After providing evidence for the structural breaks in oil price in 1996, the results indicate that, ac...