Successful cartelization requires two characteristics: demand should be inelastic, and
the cartel must be able to control most of the supply. OPEC succeeded in the short
run because the short-run demand and supply of oil were both inelastic. CIPEC has
not been successful because both demand and non-CIPEC supply were highly
responsive to price. A cartel faces two organizational problems: agreement on a price
and a division of the market among cartel members; and monitoring and enforcing the
agreement.