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Capping Russia's oil profits could keep oil flowing to global markets at a reasonable cost while slashing Putin's war funding

  • Written by Amitrajeet A. Batabyal, Distinguished Professor, Arthur J. Gosnell Professor of Economics, & Interim Head, Department of Sustainability, Rochester Institute of Technology

The world as we know it cannot function without oil, giving oil-producing countries an advantage economists call market power. Nations that produce oil are able to set the price, while countries that rely on oil have little choice but to buy it at prices determined by the seller.

While this asymmetry in market power generally favors the seller, in...

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