Abstract
Oligopolistic interdependence strikes a balance between collusion and self restraint and effectively reduces competition. The petroleum exporting countries (OPEC) in 1973 were able to avoid exceeding a predetermined growth rate and later impose sufficient curtailments to hold the cartel together. Market control could easily be lost if any one member overextended production in order to meet increased demands or reduce inventory. Production figures are given for the 11 countries to show the fluctuations in individual output and a straight line increase in output for the total cartel. U.S. published forecasts of supply were probably helpful to OPEC in predicting demand and allocating shares to the member countries. If major oil purchasing companies can secure lands where they formerly held concessions and state-owned producing companies sell to independent buyers, competition will be introduced in the consuming markets. (27 references) (DCK)
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