The Gains Debate: Framing State Choice

The theoretical bifurcation of international relations theory into (neo)realist and (neo)liberal camps has resulted in a “gains debate” that says little about an empirical world in which states exhibit both relative and absolute gains pursuit. This article deploys prospect theory in an attempt to move beyond the gains debate. The intent here is synthetic. By bringing the predictions of both perspectives under a single theoretical umbrella, we can model a broader set of state behavior. The thesis developed demonstrates that states in a gains frame pursue absolute gains and are risk averse, while states in a losses frame pursue relative gains and are risk acceptant. This hypothesis is assessed against the behavior of the European Community in the formation of the Montreal Protocol, a regime intended to protect the earth's protective ozone shield. The new model accurately predicts the timing and content of shifts in EC preferences, suggesting that a synthesis of realist and liberal approaches is possible.