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The Economic Structure of Renegotiation and Dispute Resolution in the World Trade Organization

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Author Info
Schwartz, Warren F
Sykes, Alan O
Abstract

Standard rational choice analysis explains many but not all aspects of the highly political process of international legalization. Because law engages and affects not only the interests of actors but also their normative values, the development and operation of legal regimes can be understood only by considering both motivations together. We develop a simple model of the interaction of "value" and "interest" actors that shows how their different logics of behavior and distinctive strategies drive the politics of legalization--both in particular episodes and through deeper interrelationships over time. To demonstrate our argument empirically, we analyze how various turning points in the development of the 1997 Organization for Economic Cooperation and Development Anti-bribery Convention can be fully understood only as resulting from the interplay of values and interests. Our analysis thus blends rational choice with normative or constructivist approaches to provide a richer account of international legalization. Copyright 2002 by the University of Chicago.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Legal Studies.

Volume (Year): 31 (2002)
Issue (Month): 1 (January)
Pages: S179-204
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Handle: RePEc:ucp:jlstud:v:31:y:2002:i:1:p:s179-204

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  1. Eduardo Engel & Alexander Galetovic & Ronald Fischer, 2003. "Privatizing Highways in Latin America: is it Possible to Fix What Went Wrong?," Documentos de Trabajo 163, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
    Other versions:
  2. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2009. "Public-Private Partnerships: when and how," Documentos de Trabajo 257, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  3. Giovanni Maggi & Robert W. Staiger, 2008. "On the Role and Design of Dispute Settlement Procedures in International Trade Agreements," NBER Working Papers 14067, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Eduardo Engel & Ronald Fischer & Alexander Galetovic, 2004. "Soft Budgets And Highway Franchising," Documentos de Trabajo 176, Centro de Economía Aplicada, Universidad de Chile. [Downloadable!]
  5. Carsten Herrmann-Pillath, 2006. "Reciprocity and the hidden constitution of world trade," Constitutional Political Economy, Springer, vol. 17(3), pages 133-163, September. [Downloadable!] (restricted)
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