10/2 Rational choice institutionalism

international regimes

set set of implicit or explicit principles, norms, rules, and decision-making procedures around which actors’ expectations converge in a given area of international relations

international institutions

explicit arrangements, negotiated among international actors, that prescribe and/or authorize behavior

international organizations

actors that implement policy decisions and pursue their interests strategically

regime theory aka institutionalism

theories about international regimes/institutions/organizations (not about domestic regime type)

rational choice institutionalism

theories about international regimes/institutions/organizations based on rational choice assumptions

keohane’s self-labeling

“by reexamining realism in the light of rational-choice theory and with sensitivity to the significance of international institutions”

keohane name change of theory

1. modified structural realism

2. regime theory

3. neoliberalism — debates on relative v. absolute gains

4. institutionalism — rise of constructionism

modified structural realism

• states are rational, unitary actors

• states are motivated by survival

• relative power is the ultimate arbiter of conflict

1980s common assumptions

• american hegemony is declining

• multipolarity is imminent

1980s key debate: will cooperation survive?

pessimists - probably not

optimists - probably yes

Functionalism (Kehone, After Hegemony)

• account for causes in terms of their effects

• observe such institutions and then rationalize their existence

• functionalism blind spots

functionalism blind spots

• emergent phenomena (how the “invisible hand” of capitalism creates prosperity)

• unintended consequences (Austria-Hungary’s demands on Serbia lead to WW1)
  

functionalist regime theory

• states create regimes to solve problems of cooperation, and regimes serve their intended purpose

• regimes arise in dense policy space

• international regimes are a response to market failure: potential gains left unrealized due to transaction costs

bargaining q and a

1. how to decide who participates? specify terms of membership

2. how to structure interaction? provide stable rules, iteration

3. how to facilitate substantive agreements? foster reputation, knowledge of interests and BATNAS, location of pareto frontier

information q and a

1. how to understand the issue? policy expertise, scientific research

2. hot to monitor compliance? data clearing, reports generation

3. how to avoid moral hazard and adverse selection? reduce information asymmetry

decision making q and a

1. how to operate efficiently? bureaucratic economies of scale

2. how to create neutrality? autonomous bureaucracy

compliance q and a

1. how to resolve conflicts? judicial arbitration

2. how to enforce agreements? specify penalties, conditions for exclusion

keohane and pareto-optimality

by reducing transaction costs, international regimes move us closer to the pareto frontier of international cooperation