Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/85851 
Year of Publication: 
2001
Series/Report no.: 
Tinbergen Institute Discussion Paper No. 01-033/2
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
This paper addresses the interplay between unilateralism and multilateralism. I first describe theirrespective stylized facts. I next present a simple, multi-country model with high initial tariffbarriers and with the features that have always been of paramount concern to policymakers, allowgovernments to negotiate multilateral agreements, and analyze the resulting equilibrium. I thenconsider the possibility of unilateralism and find a role for a system with features remarkablysimilar to contemporary unilateralism. The relationships between multilateralism and unilateralismare subtle: Unilateralism has the properties it has because the world is multilateral (the insurancetriangle); to be useful unilateralism requires a multilateral component of some type; this typeresults from a basic compatibility problem between those who negotiate multilaterally and thosewho establish unilateralism.
Subjects: 
Unilateralism
multilateralism
administered protection
insurance triangle
multilateral component
compatibility problem
JEL: 
F13
Document Type: 
Working Paper

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