The Role of Bargaining in Oil and Gas Transit Pipelines

Ekpen James Omonbude

Chapter 3 in Cross-border Oil and Gas Pipelines and the Role of the Transit Country: Economics, Challenges, and Solutions, 2013, pp 35-56 from Palgrave Macmillan

Abstract: 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).

Keywords: Bargaining Power; Producer Country; Bargaining Position; Transit Country; Diplomatic Relation (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-27452-6_3

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DOI: 10.1057/9781137274526_3

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