POLS 2331 Lecture Notes - Lecture 2: Market Failure, Collective Action
2 Feb 2018
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Document Summary
Institutionalist theory - a synthesis of realism and liberalism. Systemic constraint-choice analysis: virtues and limitations: assumption that actors respond rationally to constraints and incentives. The context and functions of international regimes: regimes are valuable for fostering mutually bene cial agreements, market failure theory attributes problems to the system, not actors. Elements of a theory of the demand for international regimes: regimes facilitate the making of substantive agreements, valuable regimes satisfy these conditions: Positive transaction costs: high issue density > greater issue interdependence. #1: factors that increase the demand for international regimes: Coping with uncertainties: insurance regimes: there are risks to being a part of a regime and not being a part of a regime, diversi cation is a useful strategy for when markets lack institutions. Functions of international organizations: provides a legal liability framework, reduces transaction costs, reduces uncertainty, lengthens the shadow of the future (consideration of long-term interests, links together issues.
