Economics of Alliances: The Lessons for Collective Action

Todd M. Sandler · Keith Hartley

383 citations0/0 files storedJournal of Economic Literature

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Defense, Military, and Policy Studies International Relations and Foreign Policy Game Theory and Voting Systems

Abstract

This essay provides an up-to-date summary of the findings of the literature on the economics of alliances. We show that the study of the economics of alliances has played a pivotal role in understanding and applying public good analysis to real-world applications. We establish that the manner in which alliances address burden sharing and allocative issues is related to strategic doctrines, weapon technology, perceived threats, and membership composition. Past contributions are evaluated, and areas needing further development are identified. The theoretical and empirical knowledge gained from the study of alliances is shown to be directly applicable to a wide range of international collectives.

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References

1966The Logic of Collective Action.1960The Strategy of Conflict 1965An Economic Theory of Clubs 1996The Theory of Externalities, Public Goods, and Club Goods 1975Markets and hierarchies, analysis and antitrust implications : a study in the economics of internal organization 1982The Rise and Decline of Nations: Economic Growth, Stagflation, and Social Rigidities 1986On the private provision of public goods 1998Why States Act through Formal International Organizations

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