Political Science 2231E Lecture Notes - Lecture 3: Invisible Hand, Comparative Advantage, Collective Security
27 Dec 2018
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Idea when one party, the other side will reciprocate. We don"t need a central authority to oversee the give and take. Mirror response of opposing side in your next move. Mutual gain -> mutual rules and expectations. Interconnection = reliance and dependence on each other for certain goods and services. Invisible hand of market place puts us in our jobs. Collective benefit = the good or service they self/provide. Business classes = no gain (taxes, limits) Depends on: cost (key), quality, quantity, national priorities, etc. Need cooperation = tariffs, taxes, regulations, etc. Benefits of cooperating form permanent organizations over time. Sets of rules, norms, and procedures around which expectations of actors converge on certain issue. Problem: transaction costs = costs/loss of engaging in a particular activity. Provides negotiations and discussion -> igo provide forum. Monitoring and enforcement -> igo criteria creation. Mechanism for catching cheaters -> igo collects information. Escape clauses + renege -> igo engagement.
