Country Cartels ∗

  title={Country Cartels ∗},
  author={Dan Bernhardt and Mahdi Rastad},
We analyze collusion under demand uncertainty by cartels such as OPEC that care about the utility derived from profits by citizens. When citizens are sufficiently risk averse and fixed operating costs are non-trivial, it becomes difficult for cartels to collusively restrict output both when demand is low and marginal dollars are highlyvalued, and when… CONTINUE READING