Monday, April 09, 2007

I hate the name 'Cartel'

Leading Gas Exporters have gathered in Doha, Qatar. Qatari Oil Minister Abdullah al-Attiyah told reporters: "I hate the name 'cartel.' We are not a cartel," he added that they have gathered to “consider our interests." It seems this former head of OPEC does not have good memories of running a cartel.

However many teachers of industrial organization would point out to his highness that “gathering to consider your interests” is exactly what producers do in an oligopoly market. It might not result in a cartel. But it will make the game cooperative.
Qatar, Iran, Turkeministan and Russia are world's major providors of natural gas.

No comments: