Cartels: Breaking Up Ain't Hard to Do

ENDNOTES

1. Current OPEC members are (in order of output): Saudi Arabia, Iran, Venezuela, Iraq, United Arab Emirates, Nigeria, Kuwait, Indonesia, Libya, Algeria and Qatar. Iraq's production, however, has been under U.N. control since the end of the Gulf War and, hence, is not subject to the OPEC agreement. Non-OPEC members that also agreed to cut production are Russia, Mexico, Norway and Oman.
2. See Ziemba (1992).
3. The antitrust laws of the United States and many other countries prohibit firms from engaging in collusive behavior.

FOR FURTHER READING

Griffin, James M., and Weiwen Xiong. "The Incentive to Cheat: An Empirical Analysis of OPEC," Journal of Law and Economics (October 1997), pp. 289-316.

Ibrahim, Youssef M. "Cheap Oil Focuses Mind," The New York Times (March, 28, 1999).

__________. "Oil Countries Approve World Cutback of 3%," The New York Times (March 24, 1999).

__________. "Rarely for OPEC, Oil and Politics Did Mix," The New York Times (March 25, 1999).

Zagorin, Adam. "OPEC Talks Tough Again," Time (March 22, 1999).

Ziemba, Stanley. "Wave of Discounts Rattles Effort to Simplify Air Fares," Chicago Tribune (April 21, 1992).