Thursday, June 01, 2017

Collective action problems are hard

Hey remember in December when Putin patted himself on the back for getting Saudi Arabia and Iran to agree to curbs on production for both OPEC and non-OPEC countries? You might have noticed that oil prices have not gone up, despite Putin's accomplishment last winter. Part of the problem may be cheating. Not everyone is abiding by the agreed-upon caps, including at least one of Putin's own client states.