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Endogenous Strategic Issue Linkage in International Negotiations

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Author Info

  • Carlo Carraro

    (University of Venice, CEPS, CEPR, CESifo and Fondazione Eni Enrico Mattei)

  • Carmen Marchiori

    (University College of London and Fondazione Eni Enrico Mattei)

Abstract

This paper analyses issue linkage as a way to increase co-operation on issues where incentives to free-ride are strong. The goal is to determine under what conditions players prefer to link negotiations on two different issues rather than to negotiate on the two issues separately. Suppose that players are asked to vote on issue linkage before starting negotiations. Under what conditions would they vote in favour of issue linkage? The answer to this question is not trivial. Issue linkage may indeed increase the number of cooperators on the provision of a public good (a typical issue characterised by strong incentives to free-ride). However, at the same time, issue linkage may reduce the number of cooperating players on the other economic issue which is linked to the provision of a public good. Players therefore face a trade-off. This paper analyses this trade-off within a game-theoretic framework and shows under what conditions issue linkage is players’ equilibrium strategy.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2003.40.

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Date of creation: Apr 2003
Date of revision:
Handle: RePEc:fem:femwpa:2003.40

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Related research

Keywords: International environmental agreements; coalition formation games; issue linkage;

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Cited by:
  1. Barbara Buchner & Carlo Carraro & Igor Cersosimo & Carmen Marchiori, 2002. "Back to Kyoto? US Participation and the Linkage between R&D and Climate Cooperation," CESifo Working Paper Series 688, CESifo Group Munich.
  2. Christine Heumesser, 2008. "Designing of research coalitions in promoting GEOSS. A brief overview of the literature," Working Papers 402008, Institute for Sustainable Economic Development, Department of Economics and Social Sciences, University of Natural Resources and Life Sciences, Vienna.
  3. Nicola Acocella & Giovanni Bartolomeo & Wilfried Pauwels, 2010. "Is there any scope for corporatism in macroeconomic policies?," Empirica, Springer, vol. 37(4), pages 403-424, November.
  4. Golombek, Rolf & Hoel, Michael, 2006. "Endogenous technology and tradable emission quotas," Memorandum 03/2006, Oslo University, Department of Economics.
  5. Acocella, Nicola & Di Bartolomeo, Giovanni & Pauwels, Wilfried, 2007. "Is there any scope for corporatism in stabilization policies?," MPRA Paper 3584, University Library of Munich, Germany.
  6. Golombek, Rolf & Hoel, Michael, 2005. "The Kyoto agreement and Technology Spillovers," Memorandum 05/2005, Oslo University, Department of Economics.
  7. Golombek, Rolf & Hoel, Michael, 2004. "Climate Agreements and Technology Policy," Memorandum 11/2004, Oslo University, Department of Economics.

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