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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST
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To: Dana Adams who wrote (17949)1/5/2000 4:42:00 PM
From: phileasfogg  Read Replies (1) of 42804
 
Dana, I can only understand your dismissal at DeeJay's remark if you believe either that
i) the OPEC (I guess that is the interpretation one should give to your "Arabs" - Iran is not Arabic but Persian) is enjoying a monopoly situation
ii) or the oil market can achieve "Nash equilibrium" whereby multiple parties in an open competitive market are pricing with respect to one another with no incentive to change price and a view to set and hold a profit maximizing price.

Unfortunately, the oil market is no longer dominated by the OPEC. It is neither a monopolistic nor an oligopolistic market.Venezuela free pricing strategy is totally opportunistic and more reminiscent of a sniper. Further, the UK (even more so now that Scotland controls a share of the North Sea oil revenues), Norway and Russia to name only a few alternative providers, will always trouble the rules of engagement set by the OPEC to growth the share of their supply particularly to Europe (EURO zone) and Asia . Finally, the US drive its own independent strategy while the "7 Sisters cartel" (now down to 5 with the M&A activity of late)will always interfere should the suppliers regain the upper hand in the price negotiations.
If you want more insight, I can provide you links and references to some of HBR's Game Theory cases. The Oil market is a Game Theory standard for MBAs.

Enough of Microeconomics, Let's return to MRVC.
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