TY - JOUR
T1 - Dynamic bargaining and the prospects for learning in the petroleum industry
T2 - The case of Kazakhstan
AU - Hosman, Laura
N1 - Funding Information:
Catherine Nyaki Adeya (Consultant, Kenya), Abdul Alkalimat (University of Illinois, USA), Mehdi Parvizi Amineh (University of Amsterdam & Clingendael, The Netherlands), Suma Athreye (Brunel University, England), Chris Benner (Pennsylvania State University, USA), Christopher J. Chetsanga (Scientific and Industrial Research & Development Centre, Zimbabwe), S.N. Eisenstadt (Hebrew University, Israel), Walda K. Fishman (Howard University, USA), Ralph Gomes (Howard University, USA), Ronald Kempe Hope (University of Botswana, Botswana), Joseph Jabbra (Loyola Marymount University, USA), Jong-Ho Kim (Kyung Hee University, South Korea), Kong-Rae Lee (Science and Technology Policy Institute, South Korea), Linda Low (National University of Singapore, Singapore), Robin Mansell (London School of Economics, England), Gideon B.A. Okelo (African Academy of Sciences, Kenya), Daniel Schaffer (Third World Academy of Sciences, Italy), Wesley Shrum (Louisiana State University, USA), Paulo Siqueira (ICS-UNIDO Initiative for Latin America, Italy/Brazil), Wole O. Soboyejo (Princeton University, USA), Ernest J. Wilson III (University of Southern California, USA), Wong Poh Kam (National University of Singapore, Singapore)
PY - 2009/2/1
Y1 - 2009/2/1
N2 - This article examines the bargaining interface between petroleum-rich developing countries and large multinational corporations, with an application to the case of Kazakhstan, formerly a Soviet Republic. In the analytic narrative tradition, this article combines a case study with an extensive form game, applying Theodore Moran's dynamic bargaining theory, which posits that, over time and through repeated interaction, developing countries do better for themselves, incrementally improving their outcomes through bargaining and strategic interaction, thereby advancing along a learning curve. The application of this theory is systematized through the utilization of game theory; an extensive game modeled on strategic, iterated bargaining behavior between the two actors is introduced. This dynamic game allows for the recalculation of strategies based on the players' revealed moves, allowing for the concept of learning while doing. The game is then applied to Kazakhstan's particular situation. The application of Moran's theory through the use of a generalizable game provides a method for resource-rich developing countries-particularly those in the nascent stages of developing these industries-to systematize the negotiation process and accelerate their ascent on a bargaining learning curve.
AB - This article examines the bargaining interface between petroleum-rich developing countries and large multinational corporations, with an application to the case of Kazakhstan, formerly a Soviet Republic. In the analytic narrative tradition, this article combines a case study with an extensive form game, applying Theodore Moran's dynamic bargaining theory, which posits that, over time and through repeated interaction, developing countries do better for themselves, incrementally improving their outcomes through bargaining and strategic interaction, thereby advancing along a learning curve. The application of this theory is systematized through the utilization of game theory; an extensive game modeled on strategic, iterated bargaining behavior between the two actors is introduced. This dynamic game allows for the recalculation of strategies based on the players' revealed moves, allowing for the concept of learning while doing. The game is then applied to Kazakhstan's particular situation. The application of Moran's theory through the use of a generalizable game provides a method for resource-rich developing countries-particularly those in the nascent stages of developing these industries-to systematize the negotiation process and accelerate their ascent on a bargaining learning curve.
KW - Dynamic bargaining
KW - Game theory
KW - Kazakhstan
KW - Learning curve
KW - Natural resources
KW - Negotiation
KW - Petroleum
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U2 - 10.1163/156914909X403162
DO - 10.1163/156914909X403162
M3 - Article
AN - SCOPUS:69149103663
VL - 8
SP - 1
EP - 25
JO - Perspectives on Global Development and Technology
JF - Perspectives on Global Development and Technology
SN - 1569-1500
IS - 1
ER -