Cartel, OPEC
01 November 2007
Fabrizio Bertoglio
1.0 Introduction
FIRST SECTION : General words on cartel Theory
1.1 Definition of Cartel and graphic representation
1.2 Main type of cartel
1.3 How a cartel can endure for a long time
SECOND SECTION : The OPEC case
2.1 OPEC in the world, general view of the actual OPEC business situation
2.2 Coordination in the OPEC Cartel
2.3 Product
2.3.1 Cost of production
2.3.2 Agreement on the price and coordination in fixing it
2.3.3 Demand elasticity
2.4 Detection of deviation
3.0 Conclusion
1.0 INTRODUCTION
The reason way I choose the cartel, as my theme, is only for personal interest and desire of learn more about this type of co-operation. OPEC is one the biggest international Cartel in the world. Numerous people write and speak about this co-operation, for his great influence in our everyday life and in our economics. This is a theme of great relevance.
The structure of my essay follow my study in depth of this subject, starting from the general information and studies on the cartel, founding the main characteristic and using them to study OPEC cartel efficiency.
My aim is to found in OPEC point of strength and of weakness (as a cartel), and compare them in a conclusion of the essay. In this way I will analyze the market of crude oil, the principle producers of crude oil, their production and consumption, the homogeneity of the products, their way of production, the agreement of the price and the coordination in the price fixing, some hint on demand of crude oil and the detection of deviation, how much is legally dangerous for OPEC members their collusion.
After this analyze, noting the main characteristic of OPEC ...