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
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.