This article proposes a two-stage oligopoly model for the crude oil market. In a game of several Stackelberg leaders, market power increases endogenously as the spare capacity of the competitive fringe goes down. This effect is due to the specific cost function characteristics of extractive industries. The model captures the increase of OPEC market power before the financial crisis and its drastic...
Daniel Huppmann
Potsdam,
26.06.2013
- 28.06.2013| DIW Berlin Graduate Center 2013 Summer Workshop