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The Role of Bargaining in Oil and Gas Transit Pipelines

In: Cross-border Oil and Gas Pipelines and the Role of the Transit Country: Economics, Challenges, and Solutions

Author

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  • Ekpen James Omonbude

Abstract

Given the rent-capturing behaviour of the transit country, which is enhanced significantly by its improved position in terms of the obsolescing bargain, this chapter reviews critically the basic principles of bargaining theory. The objective is to explain the role of bargaining in the determination of transit agreements for cross-border oil and gas pipelines. More specifically, this chapter investigates the sources of bargaining power, how the balance of power shifts along the pipeline supply chain, and how (or whether) bargaining power differs with respect to the commodity traded (i.e. oil or gas).

Suggested Citation

  • Ekpen James Omonbude, 2013. "The Role of Bargaining in Oil and Gas Transit Pipelines," Palgrave Macmillan Books, in: Cross-border Oil and Gas Pipelines and the Role of the Transit Country: Economics, Challenges, and Solutions, chapter 3, pages 35-56, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-27452-6_3
    DOI: 10.1057/9781137274526_3
    as

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