Russia and Ukraine Natural Gas Disputes Illustrate the Bilateral Monopoly Problem

Michael Giberson At the Streetwise Professor, Craig Pirrong writes that the periodic interruptions in natural gas flows from Russia across Ukraine present a “classic bilateral monopoly situation.” Bottom line–there are no saints involved in this episode.  There is a classic bilateral monopoly situation.  Each side is using its leverage to try to extract as much … More Russia and Ukraine Natural Gas Disputes Illustrate the Bilateral Monopoly Problem