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Multilateral Agricultural Trade Negotiations: A Non-cooperative and Cooperative Game Approach

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  • Kennedy, P Lynn
  • von Witzke, Harald
  • Roe, Terry L

Abstract

Agricultural trade negotiations are modelled using a non-cooperative and cooperative game theoretic framework. The model distinguishes between the European Union (EU), the United States (US) and a politically passive rest-of-the-world. Particular emphasis is placed on the effect of the exchange rate on the equilibrium outcome of the games. Through the use of intra-country compensation, the analysis shows that the US is able to convince the EU to adopt modest reform. With inter-country compensation the EU chooses a decreased level of protection, but does not choose completely free trade. Copyright 1996 by Oxford University Press.

Suggested Citation

  • Kennedy, P Lynn & von Witzke, Harald & Roe, Terry L, 1996. "Multilateral Agricultural Trade Negotiations: A Non-cooperative and Cooperative Game Approach," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 23(4), pages 381-399.
    • Handle: RePEc:oup:erevae:v:23:y:1996:i:4:p:381-99
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    Cited by:

    1. Thilo Glebe & Klaus Salhofer, 2007. "EU agri‐environmental programs and the “restaurant table effect”," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 211-218, September.
    2. de Gorter, Harry, 2008. "Explaining Inefficient Policy Instruments," Agricultural Distortions Working Paper Series 48638, World Bank.
    3. Antimiani, Alessandro & Conforti, Piero & Salvatici, Luca, 2005. "Alternative Market Access Scenarios in the Agriculture Trade Negotiations of the Doha Round," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-23.
    4. Binfield, Julian & Meyers, William & Westhoff, Patrick, 2005. "Modelling CAP Reform: Consensus or Conflict?," Conference papers 331431, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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