1. Saudi-Russia oil war is a game theory masterstroke
- Author:
- Antoine Halff
- Publication Date:
- 03-2020
- Content Type:
- Working Paper
- Institution:
- Center on Global Energy Policy (CGEP), Columbia University
- Abstract:
- On the face of it, the idea of Saudi Arabia and Russia starting an oil price war in the middle of a global pandemic is as dumb as it gets. From a game theory perspective, it is a masterstroke. Analysts have called the breakdown of Opec+ and the lifting of the supply cuts that kept the oil market balanced in the last two years anything from a spectacular blunder to collective suicide. A new model of the oil market led by the inventors of mean-field game theory, Fields Medal laureate Pierre-Louis Lions and Jean Michel Lasry, suggests otherwise.
- Topic:
- Energy Policy, Oil, Natural Resources, and Strategic Competition
- Political Geography:
- Russia, Europe, Middle East, and Saudi Arabia