When the claim hits: bilateral investment treaties and bounded rational learning

Poulsen, Lauge N. Skovgaard and Aisbett, Emma (2013) When the claim hits: bilateral investment treaties and bounded rational learning. World Politics, 65 (2). pp. 273-313. ISSN 0043-8871

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Abstract

Using the international investment regime as its point of departure, the paper applies notions of bounded rationality to the study of economic diplomacy. Through a multi-method approach, it shows that developing countries often ignored the risks of bilateral investment treaties (BITs) until they themselves became subject to an investment treaty claim. Thus the behavior of developing country governments with regard to the international investment regime is consistent with that consistently observed for individuals in experiments and field studies: they tend to ignore high-impact, low-probability risks if they cannot bring specific ‘vivid’ instances to mind.

Item Type:	Article
Official URL:	http://journals.cambridge.org/action/displayJourna...
Additional Information:	© 2013 Trustees of Princeton University
Divisions:	International Relations
Subjects:	H Social Sciences > HG Finance J Political Science > JX International law J Political Science > JZ International relations
JEL classification:	F - International Economics > F0 - General > F00 - General F - International Economics > F0 - General > F02 - International Economic Order F - International Economics > F1 - Trade > F13 - Commercial Policy; Protection; Promotion; Trade Negotiations; International Trade Organizations F - International Economics > F2 - International Factor Movements and International Business > F20 - General F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment; Long-Term Capital Movements F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business F - International Economics > F5 - International Relations and International Political Economy > F51 - International Conflicts; Negotiations; Sanctions F - International Economics > F5 - International Relations and International Political Economy > F53 - International Agreements and Observance; International Organizations K - Law and Economics > K3 - Other Substantive Areas of Law > K33 - International Law
Date Deposited:	01 Aug 2012 08:31
Last Modified:	23 Apr 2024 21:12
URI:	http://eprints.lse.ac.uk/id/eprint/45035

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