POLI SCI 240 Lecture Notes - Lecture 20: Walt Whitman Rostow, Mercantilism, Neomercantilism
29 Mar 2018
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Document Summary
Staghunt: hunt together for the stag, or individually for the rabbit. Highlights read from stag perspective: green is best, blue is second best, orange is third best, red is worst. Mutual cooperation (liberal trade) benefits all actors. Defection (tariffs and protection) is inefficient outcome for the defector. Private cost but collective benefit free ride. Examples: (1) soviet collective farms (2) weak tax regimes: low or non-provision of collective goods, conclusion, collective goods present a multi person pd game. Enforcement by the state (hierarchy) required to prevent free riding: dealing with market failure, monopolies and oligopolies, asymmetries of information. The market for lemons? (a bad/old car: role of the state preponderant interests and morality, regulating vice; illegal or illegitimate transactions (drugs, alcohol, etc, health and safety standards, conclusion: States will have different views on what constitutes market failure; property rights; the degree of safety standards; vice; etc. In short, there will be tensions between more liberal and more interventionist states.
