POLI 359 Lecture Notes - Lecture 1: Evolutionary Game Theory, Nash Equilibrium, Pareto Efficiency
9 Aug 2019
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Document Summary
When governments are established, cooperation can occur. E. g. the u. s. is willing to cooperate with china, however maybe in some point in time, the u. s. may increasing tariffs in a particular good, and. China may retaliate and increase tariffs, but only for a limited time, and then both cooperate again. Bush administration raised steel tariffs in 2002. In this case, u. s. is very powerful when the hegemons defect, how can we restore cooperation: american industries that use steel to produce goods were harmed by high tariffs (lower marginal profit due to high production costs) Eu gave preferential access to bananas from the caribbean. Latin american countries complained to the wto. The u. s. backed latin america countries against the eu. The eu was forced to lower tariffs with latin american countries. Two key features of the dsm (abbott and snidal: centralization dispute settlement body. Independence appellate body and panels of experts.
