OPEC, the Seven Sisters, and oil market dominance: An evolutionary game theory and agent-based modeling approach

Authored by Aaron D Wood, Charles F Mason, David Finnoff

Date Published: 2016

DOI: 10.1016/j.jebo.2016.06.011

Sponsors: No sponsors listed

Platforms: C++

Model Documentation: Other Narrative Pseudocode Mathematical description

Model Code URLs: Model code not found

Abstract

A methodological toolkit comprised of evolutionary game theory and agent-based modeling is used to study OPEC and the Seven Sisters as they struggled for control over global petroleum markets during the 1960s and 1970s. An evolutionary game theory model incorporates heterogeneous populations, energy-specific variables, and behavioral considerations to capture the fundamentals of the applied problem. An agent-based model is used to provide detailed results and demonstrate the importance of the natural resource to the outcome of the model. (C) 2016 Elsevier B.V. All rights reserved.
Tags
Innovation Economics Policy imitation Framework Decision Options Exhaustible resources Cartel Producers