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Trade Negotiations under Alternative Bargaining Structure

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  • Neelanjan Sen
  • Rajit Biswas

Abstract

type="main" xml:id="ecpo12067-abs-0001"> We build a bargaining model, in which a country (leader) decides whether or not to form a free trade agreement with other nations (followers), either through a sequential or a multilateral bargaining procedure. Unlike Aghion et al. ( , Journal of International Economics, 73, 1–30), in our specification of multilateral bargaining, the leader can collude with all those follower countries who agree to its offer. This has important implications for the choice of sequential and multilateral bargaining by the leader in presence of coalition externalities. Moreover, this bargaining procedure ensures that “stumbling block” equilibrium will never occur.

Suggested Citation

  • Neelanjan Sen & Rajit Biswas, 2015. "Trade Negotiations under Alternative Bargaining Structure," Economics and Politics, Wiley Blackwell, vol. 27(3), pages 509-523, November.
    • Handle: RePEc:bla:ecopol:v:27:y:2015:i:3:p:509-523
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    File URL: http://hdl.handle.net/10.1111/ecpo.2015.27.issue-3
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    Cited by:

    1. Alejandro Caparrós & Jean-Christophe Péreau, 2017. "Multilateral versus sequential negotiations over climate change," Oxford Economic Papers, Oxford University Press, vol. 69(2), pages 365-387.
    2. Kai A. Konrad & Marcel Thum, 2021. "The better route to global tax coordination: Gradualism or multilateralism?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 793-811, May.

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