Quote:
Originally posted by ltl/fb
It seems like they would want to increase market share, or whatever. How are they not part of a cartel if they set their prices based on what OPEC says?
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if Safeway sets the prices of lettuce to be, say, $1, and Kroger is aware of that, and sets the price of its lettuce at $1, instead of 99c, that is not unlawful or a violation of the antitrust laws.
If OPEC effectively sets the world price of oil, and Exxon sells at that price too, they're not part of the cartel. Now, this isn't how things operate in the real world. In the real world, no one sets price for oil, they supply a quantity. OPEC keeps the price high by agreeing to limit quantities. Exxon as a result supplies *more* not less oil as a result than they would in the absence of the cartel because they can get a higher price for it than without the cartel.
