Negotiating the World Economy

SUMMARY

It is often said economics has become as important as security in international relations, yet we work with much less than full understanding of what goes on when government negotiators bargain over trade, finance, and the rules of international economic organizations. The process of economic negotiation shapes the world political economy, John S. Odell says, and this essential process can be understood and practiced better than it is now.

His absorbing book compares ten major economic negotiations since 1944 that have involved the United States. Odell gives the inside stories, identifying the strategies used by the negotiators, and explaining strategy choice as well as why the same strategy gains more in some situations and less in others. He identifies three broad factors--changing market conditions, negotiator beliefs, and domestic politics--as key influences on strategies and outcomes. The author develops an insightful mid-range theory premised on bounded rationality, setting it apart from the most common form of rational choice as well as from views that reject rationality. Negotiating the World Economy reveals a rich set of future research paths, and closes with guidelines for improving negotiation performance today. The main ideas are relevant for any country and for all who may be affected by economic bargaining.

ENDORSEMENTS

"John Odell has written a pathbreaking book--a theoretically sophisticated and practically useful analysis of international economic negotiations that is firmly grounded in empirical research on concrete case studies. His insights are refreshing, and the lessons he derives invaluable. This book should be required reading for all global negotiators, whether in government, business, or non-profit organizations."

Glen S. Fukushima, President, Arthur D. Little (Japan), Inc., President, American Chamber of Commerce in Japan, and former US trade negotiator

"Here, finally, is a book that speaks in its own, distinct voice on a topic that scholars have tended to neglect. Odell practices a rigorous social science that remains problem-oriented and does not hide behind faddish concepts or analytical facades. Negotiating the World Economy builds bridges not walls. It engages critically the worlds of both scholars and practitioners. It is a landmark study."

Peter J. Katzenstein, Walter S. Carpenter, Jr., Professor of International Studies, Cornell University

"Studying in depth ten international economic negotiations by the United States, John Odell offers a remarkable and original analysis of the strategies used by negotiators to get maximum payoffs and the factors that determine whether they succeed or fail. Neither scholars nor policymakers can afford to ignore this brilliant work in a brutally competitive world increasingly a witness to tough bargaining for advantage."

Jagdish Bhagwati, Arthur Lehman Professor of Economics & Professor of Political Science, Columbia University

"Professor Odell's comparative case studies are a welcome addition to the literature of international trade law. They provide students and scholars with a unique resource in building an understanding of the forces that shape, and alter, government behaviour in international economic affairs. The lessons drawn from the studies are "right on," and Odell's theoretical organization of these experiences communicates them with exceptional clarity."

Robert E. Hudec, Melvin Steen Professor of Law,
University of Minnesota

CONTENTS

List of Figures and Tables
Acknowledgements
Introduction

PART ONE. THE ELEMENTS OF NEGOTIATION

1. Present Knowledge and Present Knowledge

2. Strategies and Outcomes

3. Market Conditions

PART TWO. TWO PARTIES WITH FIXED INSTITUTIONS

1. Beliefs about Feasibility and Strategy Choice

2. Biases, Compensatory Tactics, and Outcomes

3. Internal Politics and Outcomes

4.Mixed Strategies and Outcomes

PART THREE. AN EXTENSION

1. Changing Domestic Institutions and Ratifying Regime Agreements with Barry Eichengreen

PART FOUR. IMPLICATIONS

1. Improving Knowledge

2. Improving Negotiations

Buy this book at Cornell Press.

Last revised 2/23/07 rrivera