We use cooperative game theory to analyze the impact of three controversial pipeline projects on the power structure in the Eurasian trade of natural gas. Two of them, Nord Stream and South Stream, allow Russian gas to bypass transit countries, Ukraine and Belarus. Nord Stream’s strategic...

We use cooperative game theory to analyze the strategic impact of three controversial pipeline projects. Two of them, Nord Stream and South Stream, allow Russian gas to bypass transit countries, Ukraine and Belarus. Nord Stream’s strategic value turns out to be huge, justifying the high...

We study the impact of the liberalization of EU natural gas markets on the balance of power between `local champions', customers, and outside producers. We distinguish between two steps of the reform: 1. opening access to transit pipes and 2. opening access to distribution systems, hence...

Gas from the Russian Federation accounts for a quarter of the consumption in the European Union and for more than 40% of its imports. In 2010 essentially all of these imports depended on transit through either Belarus or Ukraine, both being major importers of Russian gas themselves. On both...

Following the dissolution of the Soviet Union, various gas pipeline projects have been proposed to diversify transit routes and export markets of the landlocked Central Asian states. To evaluate the pipeline project's impact on the players' bargaining power, I apply the cooperate game theory to...

This paper illustrates a methodology for analyzing bargaining games on network markets, by means of numerical models that can be calibrated with real data. Economic incentives to join or to expand a network depend on how the network surplus is being distributed, which in turn depends on a...

For a long time European gas markets used to be dominated by `national champions', vertically integrated firms, controlling imports, transit lines and distribution networks. In its drive to create a common market, the EU commission is trying to overcome this fragmentation by liberalizing...

In most cases rent control covers only a part of the housing stock. This note provides a simple analysis of the impact which rent control and non-price rationing exert on the rent in the free sector. It is shown that, depending on the rationing mechanism, rents in the free sector can be higher...