POLI 441 Lecture Notes - Lecture 13: Incentive Compatibility, Clove, International Trade Organization
30 Jan 2018
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Document Summary
For the rest of semester, we"ll be looking at institutional design. There are a number of ways of doing this, such as enforcement. Objective: design a set of rules that objective compatible and are pareto optimal. Starts in 1947: after this, there are rounds, aiming at progressively more liberalization. If you don"t keep ahead of increasing calls for protection, than you"ll backtrack and fall towards greater protectionism. What does the wto actually do? (gatt turned into wto: there"s a lot of misrepresentation of what the wto does, there tends to be a belief that the institution is more powerful than it actually is. If you offer a concession/commitment to one country, you have to offer it to everyone else: preferential trade agreements (ptas): exceptions to mfn, like ptas (lower trade barriers ex. If you make a deal has to be extended to everyone else as well.
