The West European Petrochemicals Industry in 1994

The case describes the development of the petrochemical industry in Europe, the major European competitors, global demand and supply conditions, attempts at industry restructuring and self-regulation. It takes stock of the industry in 1994 as it is poised to enter another period of investing.

The case allows an analysis:

Of the forces driving overcapacity in industries
The different regional and institutional approaches to deal with overcapacity
An analysis of the tragedy of the commons in dealing with overcapacity