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Structure Matters: Oil Markets Enter the Adelman Era

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  • Philip K. Verleger Jr.

Abstract

The 2014/2015 oil price collapse surprised the many economists who have published brilliant econometric explanations of oil price behavior. The sharp decline would not have caught Morris Adelman unawares. Professor Adelman’s lifelong research focused on the link between market structure and price behavior. His seminal work on industry structure, beginning with grocery retailer A&P, has provided a framework that can be used to explain oil price fluctuations that have occurred over the past four decades. His approach may not be as accurate as the elegant econometric models that dominate today’s literature but it does have one clear advantage: it provides far greater clarity on the way forward.

Suggested Citation

  • Philip K. Verleger Jr., 2015. "Structure Matters: Oil Markets Enter the Adelman Era," The Energy Journal, , vol. 36(1_suppl), pages 129-158, June.
    • Handle: RePEc:sae:enejou:v:36:y:2015:i:1_suppl:p:129-158
    DOI: 10.5547/01956574.36.SI1.pver
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    References listed on IDEAS

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    1. Williams,Jeffrey C. & Wright,Brian D., 2005. "Storage and Commodity Markets," Cambridge Books, Cambridge University Press, number 9780521023399, May.
    2. Christiane Baumeister & Lutz Kilian, 2016. "Understanding the Decline in the Price of Oil since June 2014," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(1), pages 131-158.
    3. Lutz Kilian, 2009. "Not All Oil Price Shocks Are Alike: Disentangling Demand and Supply Shocks in the Crude Oil Market," American Economic Review, American Economic Association, vol. 99(3), pages 1053-1069, June.
    4. Turnovsky, Stephen J, 1983. "The Determination of Spot and Futures Prices with Storable Commodities," Econometrica, Econometric Society, vol. 51(5), pages 1363-1387, September.
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