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The limitations of bargaining theory: a case study of the International Petroleum Company in Peru

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The usual bargaining model used to analyze the interaction of foreign companies and developing countries is inadequate because its political assumptions are usually misleading and tend to abstract from a highly complex reality. The case of the International Petroleum Company in Peru is used to illustrate how political parties there were constrained by the presence of a large foreign firm to act in certain ways which could not have been predicted by a ‘rational’ model of bargaining.

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en

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http://eprints.lse.ac.uk/26751/

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