Price Leadership and Collusion Models in Gas Cartel with Use of Genetic Algorithm

The study has calculated the price path، extraction path and discounted profit forGECF and fringe group with use of genetic algorithm on the basis of Priceleadership and collusion models. In this regard، members of «Gas ExportingCountries Forum» have been considered as a pricing cartel and other producers asthe fringe group. For this purpose، annual data (1980-2010) is used for forecasting ofstudied trends up to year 2070. the result from price leadership model show thatworld gas demand Increases linearly over the time and it Increases exponentially. On this basis the supply of fringe group also grows increasingly، and the cartelssupply (that is the margin between world demand and fringe supply) growsdecreasingly. The results from collusion solution indicates that extraction trend isslower in compared with the price leadership solution and the price and profit incollusion solution is more than price leadership solution.