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Economic Theories of Alliances
The Collective and Club Goods Frameworks
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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)
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Major Categories of Int’l Goods (Barry Hughes)
Rivalry Non-Rivalry Excludability Private goods Coordination goods Non-excludability Common property resources Public goods
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The Collective Goods Model: Assumptions
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