Coffee Cartel ECO 481 – Misc. notes – Spring 2016

Firms collude Firms collude - Try to act as if it were a monopoly. - Must increase excess capacity – incentive to cheat. BOAPW – Be the only one not to join! BOAPW – Be the only one not to join! Oligopoly – Cartel Model demand MR P* Q* MC ATC P** Q** Price quantity

Real Price of Coffee,

Canyon Forest Village

Prior to the Supplement, the environmental community was very much opposed to all the Forest Service alternatives (Seifert 1994b). The watchdog of the Colorado Plateau, the Grand Canyon Trust, is an environmental group that generally considers such development incompatible with the Colorado Plateau’s ecology. Yet the Grand Canyon Trust was the first environmental organization to support the proposal, and this helped gain support and legitimacy for CFV. The Grand Canyon Trust took the position that development in the area was inevitable regardless of what happens with CFV and that it was in its interest to help shape the type of development, rather than allow it to occur haphazardly. GCT put its name on the line and convinced other environmental organizations to support CFV and its environmentally sensitive design. Perhaps as an incentive, the developer offered GCT a position in the Kaibab Institute, an institution designed to enforce water covenants and provide educational support and environmental programs within a cultural center called INSIGHT. One percent of all sales at CFV, estimated to exceed $1 million annually, funded the Institute (Ghioto 1999b).

FLAGSTAFF – The first members of a citizens’ panel formed to oversee a development near Grand Canyon National Park have been appointed. The backers of the project hope the Kaibab Institute will help reassure residents that Canyon Forest Village will comply with its environmental promises. On Wednesday, Karan English, a former congresswoman and now project director of the Center for Sustainable Environments at Northern Arizona University, and Richard Mangum, co-owner of Hexagon Press and a former Coconino County Superior Court justice, were appointed as the first trustees of the Kaibab Institute. English has been an outspoken supporter of the project, and Mangum is the author of several books on Flagstaff history and hiking. The institute is charged with ensuring that the 272-acre Canyon Forest Village complies with environmental commitments, including a promise to abstain from ground-water use. Canyon Forest Village, which has faced heavy opposition from local residents, is to include hotels, stores, housing and community facilities directly south of the entrance to Grand Canyon National Park. The Coconino County Board of Supervisors approved the zoning for the project, but referendum petitions for the November ballot have been filed by those who oppose the project. The Kaibab Institute is slated to eventually include five trustees and representatives of the Havasupai Tribe and environmental groups. It will have $1.6 million for conservation projects in the Grand Canyon region. English and Mangum were appointed by the Tucson-based Sonoran Institute. The institute will be funded by a 1 percent levy on all retail sales at Canyon Forest Village. It will oversee investment of those funds to preserve environmentally sensitive land, restore ecologically degraded areas and offer environmental education programs.