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Reciprocal Preferences and Expectations in International Agreements

초록/요약

This paper explores the implications of reciprocal preferences and countries' expectations towards others on international agreements to supply global public goods. Reciprocal countries reward kind (positive reciprocity) but retaliate against unkind behavior (negative reciprocity). We introduce a model where countries decide not only to participate or not but also how much effort to exert. We demonstrate that reciprocal preferences could have both positive and negative impact on the effort exerted by the signatories and non-signatories of a treaty, depending on the expectations towards others. Furthermore, participation in a stable treaty does either remain the same or shrink due to reciprocal preferences.

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