Oil Supply Shocks and International Policy Coordination
نویسندگان
چکیده
This paper examines the value of international cooperation in an oil supply disruption. The perspective is that of oil-importing countries; since the oil market is integrated internationally, the actions of one have spillover effects on the others. We focus on bulTer stock policies, with each player maximizing the present value of national income less the cost of operating the stockpile program. We contrast cooperative and Coumot-Nash solutions to the dynamic game, paying special attention to the asymmetries between small and large countries. The principal results are reviewed to assess the viability of current international agreements.
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