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Multilateral Bargaining Over Trade Policies

Authors: Harrison, Glenn;

Multilateral Bargaining Over Trade Policies

Abstract

Is it possible to design a bargaining institution that will substantially improve the international trade negotiations conducted in a multilateral basis? Rausser and Simon [1991] propose a multilateral bargaining (MB) institution which has many attractive theoretical properties, and which appears to be general enough to encompass realistic classes of trade negotiation problems. Harrison, McCabe, Rausser and Simon [1992] provide some elementary "stress tests" of the MB institution in the form of laboratory experiments using contrived preferences. In this paper I extend the "lab stress testing" to assess the outcomes that the MB institution would theoretically achieve using less contrived negotiation problems. In section 2 I present a brief overview of the main properties of the MB institution, including a series of "large" numerical examples. These examples are still contrived in the sense of employing artificial preference structures, but are useful to illustrate the general numerical properties of the model. They provide the backdrop to our simulations using more realistic preference structures appropriate for negotiations over trade policies. In section 3 I review alternative approaches to estimating "realistic" policy preferences. In section 4 I employ one of these methods to generate some preference structures over agricultural trade policy reforms, and solve the resulting MB game.

Country
United States
Related Organizations
Keywords

Policy, Agricultural and Resource Economics, 330, Economic Policy, Agriculture

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
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