The development of OPEC: an evolutionary game theory and agent-based modeling approach

Aaron D. Wood (), Charles F. Mason and David Finnoff
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Aaron D. Wood: The University of Tampa
Charles F. Mason: The University of Wyoming
David Finnoff: The University of Wyoming

SN Business & Economics, 2025, vol. 5, issue 7, 1-18

Abstract: Abstract Over the course of the 1960s and 1970s, the Organization of Petroleum Exporting Countries (OPEC) evolved from a largely ineffective and disorganized group into the dominant force in international crude oil markets. In this paper we employ a methodological toolkit comprised of evolutionary game theory and agent-based modeling to study the development of OPEC over this period. Our evolutionary game theory model incorporates energy-specific variables and behavioral considerations to depict the actions of cartel members over the period of interest. Our agent-based model provides detailed results and demonstrates the importance of growing oil reserves to the outcome of the model.

Keywords: Evolutionary game theory; Agent-based modeling; Energy economics; Behavioral economics; Computational economics; OPEC; Petroleum (search for similar items in EconPapers)
JEL-codes: B41 C63 C73 C88 D43 D74 D91 Q40 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s43546-024-00776-6

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