World oil: the growing case for international policy.

Can the economic theory of depletion be reconciled with low petroleum prices? This article uses a revision of the theory, which reflects demand functions that rise in response to increasing world population and income. The magnitude of producers' and consumers' surplus is estimated under both compet...

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Publicado en:Contemporary Economic Policy Vol. 18; no. 1; pp. 1 - 14
Autores principales: Chapman, Duane, Khanna, Neha
Formato: Artículo
Publicado: Wiley-Blackwell January 2000
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Acceso en línea:Ver este registro en EBSCOhost
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          Chapman, Duane
          Khanna, Neha
      su:
        Economics
        Game theory
        Petroleum reserves
        Petroleum product sales & prices
        Present value
        Resource exploitation
        Consumers' surplus
        Production (Economic theory)
        Surplus (Economics)
      sug:
        subj:
          Economics
          Game theory
          Petroleum reserves
          Petroleum product sales & prices
          Present value
          Resource exploitation
          Consumers' surplus
          Production (Economic theory)
          Surplus (Economics)
      keyword: Petroleum supply -- International aspects
      ab: Can the economic theory of depletion be reconciled with low petroleum prices? This article uses a revision of the theory, which reflects demand functions that rise in response to increasing world population and income. The magnitude of producers' and consumers' surplus is estimated under both competitive and monopolistic assumptions; the result indicates a present value comparable to or in excess of today's gross world economic product. Game theory suggests a framework that explains the interaction between oil pricing and military policy, and the economic incentives that result in a general pattern of recent market equilibrium crude oil prices often fluctuating within a $15-20 per barrel range. The analysis concludes that the economic incentives for political instability in the Persian Gulf will increase, and more formal methods of setting the international framework for Persian Gulf oil may be expected. (JEL C61, Q32, Q41, Q43, Q48) Reprinted by permission of the publisher.
      pubtype: Academic Journal
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    language: English
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