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Delegation games: an application to customs unions

Delegation games: an application to customs unions
Delegation games: an application to customs unions
We study a model in which a customs union trades with countries which behave strategically. Provided that the members of the customs union are similar but not identical, we show that both in the case in which intra-union transfers are allowed as well as in the one in which they are not, one country may want to delegate authority for making union policy to its partner. The delegation decision depends on whether the policies used by union and non-union countries are strategic substitutes or complements, and on which union member is more "aggressive".
0034-6527
391-397
Konstantine, Gatsios
54d3176d-25a8-459e-b3d4-e5f5be3a4975
Karp, Larry
c0e2efad-f4e6-4fb9-9630-aaa8cf37b72e
Konstantine, Gatsios
54d3176d-25a8-459e-b3d4-e5f5be3a4975
Karp, Larry
c0e2efad-f4e6-4fb9-9630-aaa8cf37b72e

Konstantine, Gatsios and Karp, Larry (1991) Delegation games: an application to customs unions. Review of Economic Studies, 58 (2), 391-397.

Record type: Article

Abstract

We study a model in which a customs union trades with countries which behave strategically. Provided that the members of the customs union are similar but not identical, we show that both in the case in which intra-union transfers are allowed as well as in the one in which they are not, one country may want to delegate authority for making union policy to its partner. The delegation decision depends on whether the policies used by union and non-union countries are strategic substitutes or complements, and on which union member is more "aggressive".

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More information

Published date: April 1991
Related URLs:
Organisations: Economics

Identifiers

Local EPrints ID: 32975
URI: http://eprints.soton.ac.uk/id/eprint/32975
ISSN: 0034-6527
PURE UUID: 79b23add-e51c-4204-97c4-516b0cf4a1ab

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Date deposited: 11 Dec 2007
Last modified: 22 Jul 2022 20:39

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Contributors

Author: Gatsios Konstantine
Author: Larry Karp

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