Abstract
OPEC has employed production or supply quotas on various occasions since March 1982 in an effort to control oil prices. No explicit formula has been used to allocate quotas among members. Nevertheless, an implicit formula may be derived from OPEC's observed behaviour. The principal elements in the formula so derived are each individual member's oil production capacity and (merchandise) imports per capita. When an effort is made to extend this implicit formula to cover selected non-OPEC oil exporters, the results are unrealistic in terms of political acceptability. Therefore prospects for cooperative production restraint between OPEC and non-OPEC have been, and remain, extremely slim.
Published Version
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