Chapter

The New Institutional Economics and Pipeline Transport

in The Political Economy of Pipelines

Published by University of Chicago Press

Published in print April 2012 | ISBN: 9780226502106
Published online March 2013 | e-ISBN: 9780226502120 | DOI: http://dx.doi.org/10.7208/chicago/9780226502120.003.0001
The New Institutional Economics and Pipeline Transport

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This book explores how and why competition arose in the pipeline transport industry, specifically addressing transaction costs and asset specificity, institutional evolution, intangible property rights, and collective action. Pipelines showed great asset specificity. Douglass North determined the creation of institutions to define and ensure property rights as the basis for new forms of financing and trade. Pipeline systems were uniquely suited to the creation of the bundles of legal entitlements that form the basis of Coasian bargaining. Throughout this book, pipelines illustrate an interdisciplinary approach to economic theory. The analysis turns to the oil pipeline system in the United States or gas pipeline systems in various countries to demonstrate the cause and effect of varied institutional environments. This chapter provides an overview of the chapters that follow.

Keywords: pipeline transport industry; transaction costs; asset specificity; institutional evolution; intangible property rights; collective action; Douglass North; oil pipeline system; United States; gas pipeline systems

Chapter.  5752 words. 

Subjects: Political Economy

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