Theo Blog 2: Lego and Shell Oil
Lego bricks, like many modern toys, are made of an oil-derived plastic. Up until very recently, Lego had a promotional deal with the oil company Shell, making the two compliments of each other. When the demand curve shifted for one, it would shift for the other. However, after a long campaign orchestrated by the enviornmental group called Greenpeace, which was displeased by Lego’s continued partnership with a company participating in Arctic drilling, Lego finally agreed to terminate their partnership with Shell. The two are thus, no longer complimentary goods. This event may also cause a downward shift in the supply of oil from the Arctic, as now producers may have the expectation of penalties for those who stay. As Greenpeace hoped, this may reduce producers desire to enter the market.