Bounded Rationality and Economic Diplomacy (Paperback)

Language: English

Published by Cambridge University Press, Cambridge, 2017

110755201X / 9781107552012

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Paperback. Modern investment treaties give private arbitrators power to determine whether governments should pay compensation to foreign investors for a wide range of sovereign acts. In recent years, particularly developing countries have incurred significant liabilities from investment treaty arbitration, which begs the question why they signed the treaties in the first place. Through a comprehensive and timely analysis, this book shows that governments in developing countries typically overestimated the economic benefits of investment treaties and practically ignored their risks. Rooted in insights on bounded rationality from behavioural psychology and economics, the analysis highlights how policy-makers often relied on inferential shortcuts when assessing the implications of the treaties, which resulted in systematic deviations from fully rational behaviour. This not only sheds new light on one of the most controversial legal regimes underwriting economic globalization but also provides a novel theoretical account of the often irrational, yet predictable, nature of economic diplomacy. Investment treaties have empowered foreign investors to file expensive, controversial, and wide-ranging claims against sovereign states. This book examines why and how the treaties were negotiated based on a novel theory of economic diplomacy rooted in behavioural economics and psychology. This item is printed on demand. Shipping may be from our UK warehouse or from our Australian or US warehouses, depending on stock availability.

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Title
Bounded Rationality and Economic Diplomacy (Paperback)
Author
Lauge N. Skovgaard Poulsen
Publisher
Cambridge University Press, Cambridge
Publication year
2017
Condition
new
Binding
Paperback
Language
English
ISBN 10
110755201X
ISBN 13
9781107552012

CitiRetail

Stevenage, United Kingdom

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AbeBooks seller since June 29, 2022

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