Economic Theories of Alliances The Collective and Club Goods Frameworks

Basic Concepts in Economic Theories of Alliances Types of international goods based on two criteria (rivalry and excludability) -- public vs. private goods -- goods with mixed characteristics (common property resources, coordination goods, club goods, etc) Pareto optimality Nash equilibrium External economy (or externalities)

Major Categories of Int’l Goods (Barry Hughes) Rivalry Non-Rivalry Excludability Private goods Coordination goods Non-excludability Common property resources Public goods

The Collective Goods Model: Assumptions For details, please visit Blackboard or email me ivanovid@ucmail.uc.edu Thank you!