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Breaking Up: Experimental Insights into Economic (Dis)Integration

Author

Listed:
  • Gabriele Camera

    (Economic Science Institute, Chapman University and University of Bologna)

  • Lukas Hohl

    (University of Basel)

  • Rolf Weder

    (University of Basel)

Abstract

Standard international economic theory suggests that people should embrace economic integration because it promises large gains. But recent events such as Brexit indicate a desire for economic disintegration. Here we report results of an experiment, based on a strategic analytical framework, of how size and distribution of potential gains from integration in?uence outcomes and individuals’ inclination to embrace integration. We ?nd that cross-country inequality in potential gains acts as a friction to realize those gains. This suggests that to better understand recent phenomena, international economic theory should account for distributional considerations and behavioral aspects it currently ignores.

Suggested Citation

  • Gabriele Camera & Lukas Hohl & Rolf Weder, 2019. "Breaking Up: Experimental Insights into Economic (Dis)Integration," Working Papers 19-25, Chapman University, Economic Science Institute.
    • Handle: RePEc:chu:wpaper:19-25
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    File URL: https://digitalcommons.chapman.edu/esi_working_papers/285/
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    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • F02 - International Economics - - General - - - International Economic Order and Integration

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