Cartel Pricing and the Structure of the World Bauxite Market
Volume: Volume 8, No. 2
Issue: Autumn 1977
Pages: pp. 343-360
Authors: Robert S. Pindyck
Title: Cartel Pricing and the Structure of the World Bauxite Market
Abstract: A cartel is unstable if one or more of its members can earn higher revenues in the long run by undercutting the cartel price and expanding production. In this paper dynamic and static models of the world bauxite market are used to assess the stability of the International Bauxite Association, to suggest possible changes on the structure of the bauxite market and the future of bauxite prices.
JEL Classification
Industry Studies Extractive Industries Mining metal, coal, and other nonmetallic minerals (6322)