OPEC's market power: An empirical dominant firm model for the oil market
Rolf Golombek (),
Alfonso A. Irarrazabal and
Energy Economics, 2018, vol. 70, issue C, 98-115
We estimate a dominant firm-competitive fringe model for the crude oil market using quarterly data on oil prices for the 1986–2016 period. The estimated structural parameters have the expected signs and are significant. We find that OPEC exercised market power during the sample period. Counterfactual experiments indicate that world GDP is the main driver of long-run oil prices. However, supply (depletion) factors have become more important in recent years.
Keywords: Oil; Dominant firm; Market power; OPEC; Lerner index; Oil demand elasticity; Oil supply elasticity (search for similar items in EconPapers)
JEL-codes: L13 L22 Q31 (search for similar items in EconPapers)
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Working Paper: OPEC’s market power: An Empirical Dominant Firm Model for the Oil Market (2015)
Working Paper: OPEC's Market Power: An Empirical Dominant Firm Model for the Oil Market (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:70:y:2018:i:c:p:98-115
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