Abstract
The capital-theoretic model suggested for determining the price- quantity combinations does not hold in the case of most natural resources, including petroleum, since the inelastic demand function would vitiate the optimal solution. The specification of a dynamic demand function, with necessary, attributes, no doubt, results in a valid optimal solution in period t, but that could be achieved only at the cost of sub-optimal solution in other periods. If the OPEC starts behaving as a discriminating monopoly, instead of as a pure monopoly, the optimal solution is assured in all markets and in all time periods.
Recommended Citation
Rao, Vaman, "The OPEC Oil-Pricing Policies" (1977). UMR-MEC Conference on Energy / UMR-DNR Conference on Energy. 314, pp. 492-496.
https://scholarsmine.mst.edu/umr-mec/314
Meeting Name
4th Annual UMR-DNR Conference on Energy (1977: Oct. 11-13, Rolla, MO)
Document Type
Article - Conference proceedings
Session
Energy Economics Pricing Strategies
Document Version
Final Version
File Type
text
Language(s)
English
Rights
© 1977 University of Missouri--Rolla, All rights reserved.
Publication Date
13 Oct 1977
Included in
Economics Commons, Energy Policy Commons, Environmental Policy Commons, Petroleum Engineering Commons
