MULTILATERAL AGRICULTURAL TRADE NEGOTIATIONS - A NONCOOPERATIVE AND COOPERATIVE GAME APPROACH

Citation
Pl. Kennedy et al., MULTILATERAL AGRICULTURAL TRADE NEGOTIATIONS - A NONCOOPERATIVE AND COOPERATIVE GAME APPROACH, European review of agricultural economics, 23(4), 1996, pp. 381-399
Citations number
30
Categorie Soggetti
Economics,"AgricultureEconomics & Policy
ISSN journal
01651587
Volume
23
Issue
4
Year of publication
1996
Pages
381 - 399
Database
ISI
SICI code
0165-1587(1996)23:4<381:MATN-A>2.0.ZU;2-N
Abstract
Agricultural trade negotiations are modelled using a non-cooperative a nd cooperative game theoretic framework. The model distinguishes betwe en the European Union (EU), the United States (US) and a politically p assive rest-of-the-world. Particular emphasis is placed on the effect of the exchange rate on the equilibrium outcome of the games. Through the use of intra-country compensation, the analysis shows that the US is able to convince the EU to adopt modest reform. With inter-country compensation the EU chooses a decreased level of protection, but does not choose completely free trade.