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Unilateral and Multilateral Sanctions: A Network Approach

Author

Listed:
  • Sumit Joshi

    (George Washington University)

  • Ahmed Saber Mahmud

    (Johns Hopkins University)

Abstract

The extensive literature on efficacy of sanctions has been mainly focused on a dyadic inter- action between sender and target. In contrast, this paper examines sanctions when the sender and target are embedded in a network of linkages to other agents and each agent’s utility is a function of the size of the agent’s component. Efficacy of sanctions is then a function of two factors: the network structure binding the sender and target, and the con- cavity/convexity of utility in the component size. We consider both unilateral sanctions and multilateral sanctions. We demonstrate how the network architecture, together with the specification of utility, qualifies and sometimes reverses the main tenets of the dyadic approach. We add to the recent work on identifying network architectures that sustain cooperation via the threat of exclusion by showing that the utility specification matters. Thus the same network can be efficacious for sanctions if utility is convex in component size but not if it is concave.

Suggested Citation

  • Sumit Joshi & Ahmed Saber Mahmud, 2017. "Unilateral and Multilateral Sanctions: A Network Approach," Working Papers 2017-28, The George Washington University, Institute for International Economic Policy.
  • Handle: RePEc:gwi:wpaper:2017-28
    as

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    File URL: http://www2.gwu.edu/~iiep/assets/docs/papers/2017WP/JoshiIIEP2017-28.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Unilateral sanctions; Multilateral sanctions; Sender; Target; Networks; Spanning trees; Cutsets;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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