ABSTRACT
This chapter aims to explore the extent that collective action has been a necessary condition for the producers to exercise influence over the international oil market and thereby increase their economic gains. The structural conditions for the possibility and importance of cartels are, however, not enough to explain the actual existence and "success" of cartelization. The success of a cartel depends on four factors connected with the behavior of the cartel. A cartel must determine a price for the group as a whole; determine a production level for the group as a whole; allocate output among members; and detect and punish cheaters. The chapter deals with different aspects of the collective action by the opec members. Both the price and production behavior of opec members are relevant, but most emphasis will be put on the production behavior and its relation to the quota agreements. The chapter discusses the opec members' economic gains as such.
