Designing institutions for global security

Authors

  • Rupayan Gupta

DOI:

https://doi.org/10.15355/epsj.7.2.25

Keywords:

Institutional design, mechanism design, alliance theory, bargaining theory, security, peace

Abstract

The article merges aspects of alliance theory with bargaining theory and mechanism design. Illustrated with a numeric example, it models a within-alliance neutral agency whose purpose it is to propose an efficient level of public good provision for the alliance as a whole and suggests a mechanism by which to overcome incentives for inefficient provision. The article concludes with an extensive discussion for future research needs on alliance mechanism design, e.g., suggesting that a review of the literatures on central bank design and similar institutions might be helpful.

References

Adams, G., G. Rausser, and L. Simon. 1996. “Modelling Multilateral Negotiations: An Application to California Water Policy.” Journal of Economic Behavior and Organization. Vol. 30, No. 1, pp. 97- 111.

Arce, D. and T. Sandler. 2001. “Transnational Public Goods: Strategies and Institutions.” European Journal of Political Economy. Vol. 17, No. 3, pp. 493-516.

Baliga, S. and T. Sjostrom. 2004. “Arms Races and Negotiations.” Review of Economic Studies. Vol. 71, No. 2, pp. 351-369.

Boulding, K. 1962. Conflict and Defense: A General Theory. New York: Harper & Row.

Chander, P. and H. Tulkens. 1992. “Theoretical Foundations of Negotiations and Cost-Sharing in Transfrontier Pollution Problems.” European Economic Review. Vol. 36, Nos. 2-3, pp. 288-299.

Chander, P. and H. Tulkens. 1994. “A Core-Theoretic Solution for the Design of Cooperative Agreements on Transfrontier Pollution.” International Tax and Public Finance. Vol. 2, No. 2, pp. 279 -293.

Fearon, J. 1995. “Rationalist Expectations of War.” International Organization. Vol. 49, No. 3, pp. 379-414.

Ghatak, M. and D. Mookherjee. 2011. “Land Acquisition for Industrialization and Compensation of Displaced Farmers.” Unpublished Working Paper (previous version available as UNU-WIDER Working Paper No. 2011/35).

Gupta, R. 2010. “Structuring International Institutions for the Efficient Provisioning of Global Security.” Public Choice. Vol. 144, Nos. 1-2, pp. 169-197.

Gupta, R. 2012. “Changing Threat Perceptions and the Efficient Provisioning of Global Security.” Working paper available at http://mpra.ub.uni-muenchen.de/37906/ [accessed 30 May 2012].

Hirschlifer, J. 1985. “The Expanding Domain of Economics.” American Economic Review. Vol. 75, No. 6, pp. 53-68.

Jackson, M. and M. Morelli. 2007. “Political Bias and War.” American Economic Review. Vol. 97, No. 4, pp. 1353-1373.

Jackson, M. and M. Morelli. 2011. “The Reasons for Wars: An Updated Survey,” pp. 34-57 in C. Coyne and R. Mathers, eds. Handbook on the Political Economy of War. Cheltenham, UK: Elgar.

Koremenos, B., C. Lipson, and D. Snidal. 2001. “The Rational Design of International Institutions.” International Organization. Vol. 55, No. 4, pp. 761-799.

Koremenos, B., C. Lipson, and D. Snidal. 2001b. “Rational Design: Looking Back to Move Forward.” International Organization. Vol. 55, No. 4, pp. 1051-1082.

Lapan, H. and T. Sandler. 1988. “To Bargain or Not to Bargain? That is the Question.” American Economic Review. Vol. 78, No. 2, pp. 16-21.

Lee, D. 1988. “Free Riding and Paid Riding in the Fight Against Terrorism.” American Economic Review. Vol. 78, No. 2, pp. 22-26.

Maskin, E. and T. Sjostrom. 2002. “Implementation Theory,” pp. 237-288 in K.K. Arrow, A.K. Sen, and K. Suzumura, eds. Handbook of Social Choice and Welfare. Edition 1, volume 1, chapter 5. Amsterdam: Elsevier.

Morelli, M. 2009. “Institutional Design and Conflict: An Introduction.” Review of Economic Design. Vol. 13, No. 3, pp. 167-170.

Muthoo, A. 2002. “The Economics of Bargaining.” In M. Majumdar, ed. Fundamental Economics, Vol.1, Encyclopedia of Life Support Systems. UNESCO and EOLSS. Oxford, UK: EOLSS Publishers Co. Ltd.

Neumann, M. 1991. “Precommittment by Central Bank Independence.” Open Economies Review. Vol. 2, No. 2, pp. 95-112.

Oates, W. and R. Portney. 2003. “The Political Economy of Environmental Policy,” pp. 325-354 in K. Mailer and J. Vincent, eds. Handbook of Environmental Economics, Vol.1. Amsterdam: North-Holland.

Olson, M. and R. Zeckhauser. 1966. “An Economic Theory of Alliances.” Review of Economics and Statistics. Vol. 48, No. 3, pp. 266-279.

Sandler, T. and K. Hartley. 2001. “Economics of Alliances: The Lessons for Collective Action.” Journal of Economic Literature. Vol. 39, No. 3, pp. 869-896.

Skaperdas, S. 2006. “Bargaining versus Fighting.” Defence and Peace Economics. Vol. 17, No. 6, pp. 657-676.

Staiger, R. 1995. “International Rules and Institutions for Cooperative Trade Policy,” pp. 1495-1551 in G. Grossman and K. Rogoff, eds. Handbook of International Economics, Vol. 3. Amsterdam: North-Holland.

Stavins, R. 2003. “Experience with Market-Based Environmental Policy Instruments,” pp. 355-436 in K. Mailer and J. Vincent, eds. Handbook of Environmental Economics, Vol.1. Amsterdam: North-Holland.

Thaler, R. and C. Sunstein. 2008. Nudge: Improving Decisions About Health, Wealth, and Happiness. New Haven, CT: Yale University Press.

Vicary, S. and T. Sandler. 2002. “Weakest-link Public Goods: Giving In-kind or Transferring Money.” European Economic Review. Vol. 46, No, 8, pp. 1501-1520.

Weber, S. and H. Wiesmeth. 1991. “Economic Models of NATO.” Journal of Public Economics. Vol. 46, No. 2, pp. 181-197.

Wendt, A. 2001. “Driving with the Rearview Mirror: On the Rational Science of Institutional Design.” International Organization. Vol. 55, No. 4, pp. 1019-1049.

Downloads

Published

2012-07-01

How to Cite

Gupta, R. (2012). Designing institutions for global security. The Economics of Peace and Security Journal, 7(2). https://doi.org/10.15355/epsj.7.2.25

Issue

Section

Articles

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.