POL 2103 Lecture Notes - Lecture 5: Sunk Costs, Market Failure, Bretton Woods System

• School: University of Ottawa
• Department: Political Science
• Course: POL 2103
• Professor: Kevin Mc Millan

Document Summary

Robert keohane 1984: directly respo(cid:374)ds to waltz"s argu(cid:373)e(cid:374)t of (cid:374)eorealis(cid:373) Logic: neo-realism: anarchy, self-help, survival, security dilemma, relative gains, conflict/competition. Branch of realist thought (cid:271)ut differe(cid:374)t i(cid:374) a se(cid:374)se that it is o(cid:448)er(cid:449)hel(cid:373)i(cid:374)gl(cid:455) (cid:272)o(cid:374)(cid:272)er(cid:374)ed with economic focus. Neo-realis(cid:373)"s a(cid:374)s(cid:449)er to (cid:894)e(cid:454)iste(cid:374)(cid:272)e, pre(cid:448)ale(cid:374)(cid:272)e of(cid:895) i(cid:374)ter(cid:374)atio(cid:374)al i(cid:374)stitutio(cid:374)s (cid:894)(cid:449)ho thi(cid:374)k that it is a joke) Bretton woods system of multilateral financial situation post ww2. Imf, world bank, gatt: li(cid:271)eral ideolog(cid:455) (cid:272)ooperatio(cid:374), free trade. Hst argues that one single superpower is the most stable international order that you could have; uses this idea to explain the development of international institutions. International economic institutions: key role news tasks and roles. I(cid:374)stitutio(cid:374)al e(cid:272)o(cid:374)o(cid:373)ists (cid:271)elie(cid:448)e that (cid:373)arkets do(cid:374)"t al(cid:449)a(cid:455)s (cid:449)ork; i(cid:374)stitutio(cid:374)s (cid:272)o(cid:373)e to the rescue. No government but still mutually beneficial deals, efficient outcomes third-party solutions. But 2 conditions: no/few transaction costs, perfect information (all actors need to be well-aware of situation)