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"Economists typically assert that cartels dissolve naturally after members cheat or become irrational." Really? Most economists I know acknowledge OPEC still e
by harry8 12y ago
"Economists typically assert that cartels dissolve naturally after members cheat or become irrational."
Really? Most economists I know acknowledge OPEC still exists and is still a functioning cartel. And they acknowledge that many economists predicted otherwise when it formed and were wrong. I'm pretty sure even those who made such predictions (Milton Friedman from memory for one) have acknowledged they were completely wrong.
"As everybody knows..." Was how such falsehoods used to be prefaced in the bad old days in the Soviet Union, so I'm told.
- pjc50 12y agoTo what extent OPEC is functioning and able to effectively control the oil price is very much debatable today, especially since shale oil.
- tormeh 12y agoYou're nitpicking. Shale's an external disturbance. It says nothing about the inherent stability of cartels in general or OPEC in particular.