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Cartel Pricing and the Structure of the World Bauxite Market

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  • Robert S. Pindyck

Abstract

A cartel is unstable if one or more of its members can earn higher revenues in the long run by undercutting the cartel price and expanding production. In this paper dynamic and static models of the world bauxite market are used to assess the stability of the International Bauxite Association, to suggest possible changes on the structure of the bauxite market and the future of bauxite prices.

Suggested Citation

  • Robert S. Pindyck, 1977. "Cartel Pricing and the Structure of the World Bauxite Market," Bell Journal of Economics, The RAND Corporation, vol. 8(2), pages 343-360, Autumn.
  • Handle: RePEc:rje:bellje:v:8:y:1977:i:autumn:p:343-360
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    Citations

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    Cited by:

    1. Devarajan, Shantayanan & Fisher, Anthony C, 1981. "Hotelling's "Economics of Exhaustible Resources": Fifty Years Later," Journal of Economic Literature, American Economic Association, vol. 19(1), pages 65-73, March.
    2. Benchekroun, Hassan & Gaudet, Gerard & Van Long, Ngo, 2006. "Temporary natural resource cartels," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 663-674, November.
    3. Tracy R. Lewis & Richard Schmalensee, 1980. "On Oligopolistic Markets for Nonrenewable Natural Resources," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 95(3), pages 475-491.
    4. David R. Mares, 2022. "Understanding Cartel Viability: Implications for a Latin American Lithium Suppliers Agreement," Energies, MDPI, vol. 15(15), pages 1-26, July.
    5. Frederick I. Johnson, 1983. "On the Stability of Commodity Cartels," The American Economist, Sage Publications, vol. 27(2), pages 34-36, October.
    6. Cronin, M.R., 1979. "Export Demand Elasticities With Less Than Perfect Markets," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(1), pages 1-4, April.
    7. Gérard Gaudet, 2007. "Natural resource economics under the rule of Hotelling," Canadian Journal of Economics, Canadian Economics Association, vol. 40(4), pages 1033-1059, November.
    8. Mahesh Nagarajan & Greys Soši'{c}, 2007. "Stable Farsighted Coalitions in Competitive Markets," Management Science, INFORMS, vol. 53(1), pages 29-45, January.
    9. Stephen Derrick & Daina McDonald & Phyllis Rosendale, 1981. "The Development of Energy Resources in Australia: 1981 to 1990," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 14(3), pages 13-55, October.
    10. Margaret E. Slade & Henry Thille, 2009. "Whither Hotelling: Tests of the Theory of Exhaustible Resources," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 239-259, September.
    11. Stoeckel, Andrew B., 1979. "Some General Equilibrium Effects Of Mining Growth On The Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 23(1), pages 1-22, April.

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