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The role of aggregation technologies in the provision of supranational public goods: A reconsideration of NATO’s strategies

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  • Ghislain Dutheil de la Rochère
  • Jean-Michel Josselin
  • Yvon Rocaboy

Abstract

Voluntary contributions to the provision of public goods do not necessarily follow a summation aggregation technology. The article investigates the alternative best-shot aggregation process and provides the corresponding Nash equilibrium conditions for allies in the context of joint products in a supranational alliance. The application deals with NATO over the period 1955-2006 and evidences new breakpoints and aggregation technology assessments, which leads to a reconsideration of the alliance's strategy. We find that a best-shot technology prevails from 1955 to 1970. Afterwards, summation of contributions becomes the aggregation technology of the alliance, with increased strategic behavior after 1990.
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  • Ghislain Dutheil de la Rochère & Jean-Michel Josselin & Yvon Rocaboy, 2011. "The role of aggregation technologies in the provision of supranational public goods: A reconsideration of NATO’s strategies," The Review of International Organizations, Springer, vol. 6(1), pages 85-103, March.
    • Handle: RePEc:spr:revint:v:6:y:2011:i:1:p:85-103
    DOI: 10.1007/s11558-010-9098-x
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    1. Sandler,Todd & Hartley,Keith, 1999. "The Political Economy of NATO," Cambridge Books, Cambridge University Press, number 9780521630931, September.
    2. Sandler, Todd & Hartley, Keith, 1999. "The Political Economy of Nato: Past, Present, and into the 21st Century," Staff General Research Papers Archive 1441, Iowa State University, Department of Economics.
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    9. Todd Sandler, 1977. "Impurity Of Defense: An Application To The Economics Of Alliances," Kyklos, Wiley Blackwell, vol. 30(3), pages 443-460, August.
    10. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
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    18. Todd Sandler, 2006. "Regional public goods and international organizations," The Review of International Organizations, Springer, vol. 1(1), pages 5-25, March.
    19. Sandler, Todd & Forbes, John F, 1980. "Burden Sharing, Strategy, and the Design of NATO," Economic Inquiry, Western Economic Association International, vol. 18(3), pages 425-444, July.
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    Cited by:

    1. Le Maux, Benoit & Rocaboy, Yvon, 2012. "A simple microfoundation for the utilization of fragmentation indexes to measure the performance of a team," Economics Letters, Elsevier, vol. 116(3), pages 491-493.
    2. Ghislain Dutheil de la Roch�re & Jean-Michel Josselin & Yvon Rocaboy, 2014. "SDI, NATO, and the Social Composition Function," Defence and Peace Economics, Taylor & Francis Journals, vol. 25(2), pages 85-95, April.

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    More about this item

    Keywords

    Supranational public goods; International organizations; Aggregation of contributions; Best-shot; NATO; D74; H41; H56; H87;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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