Bounded Rationality and Economic Diplomacy

The Politics of Investment Treaties in Developing Countries

Nonfiction, Social & Cultural Studies, Political Science, International, International Relations, Business & Finance
Cover of the book Bounded Rationality and Economic Diplomacy by Lauge N. Skovgaard Poulsen, Cambridge University Press
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Lauge N. Skovgaard Poulsen ISBN: 9781316430439
Publisher: Cambridge University Press Publication: August 21, 2015
Imprint: Cambridge University Press Language: English
Author: Lauge N. Skovgaard Poulsen
ISBN: 9781316430439
Publisher: Cambridge University Press
Publication: August 21, 2015
Imprint: Cambridge University Press
Language: English

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.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

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.

More books from Cambridge University Press

Cover of the book UN Human Rights Treaty Bodies by Lauge N. Skovgaard Poulsen
Cover of the book Ethnic Patriotism and the East African Revival by Lauge N. Skovgaard Poulsen
Cover of the book Thinking Through Crisis by Lauge N. Skovgaard Poulsen
Cover of the book Smart Solutions to Climate Change by Lauge N. Skovgaard Poulsen
Cover of the book Experimental Human-Computer Interaction by Lauge N. Skovgaard Poulsen
Cover of the book Democracy and Authoritarianism in the Postcommunist World by Lauge N. Skovgaard Poulsen
Cover of the book Life beyond Grades by Lauge N. Skovgaard Poulsen
Cover of the book Spinoza: Theological-Political Treatise by Lauge N. Skovgaard Poulsen
Cover of the book An Introduction to Animal Behaviour by Lauge N. Skovgaard Poulsen
Cover of the book Activists, Alliances, and Anti-U.S. Base Protests by Lauge N. Skovgaard Poulsen
Cover of the book The Changing Fortunes of Central Banking by Lauge N. Skovgaard Poulsen
Cover of the book Organising Music by Lauge N. Skovgaard Poulsen
Cover of the book The Informal Economy in Developing Nations by Lauge N. Skovgaard Poulsen
Cover of the book State and Nation Making in Latin America and Spain by Lauge N. Skovgaard Poulsen
Cover of the book The Cambridge Companion to Modernist Culture by Lauge N. Skovgaard Poulsen
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy