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An Economic Theory of Alliances
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1966
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International ManagementEconomicsMilitary AlliancesInternational CooperationInternational RelationsProportional ShareManagementBusinessInter-firm CoordinationCooperative StrategyCoopetitionInternational OrganizationNew Theoretical ModelInternational BusinessGlobal StrategyInterorganizational RelationshipInternational Institutions
Abstract : The report presents a new theoretical model of military alliances and other international organizations. The assumptions basic to the model are that nations act in their own best interests and that there is a 'public goods' aspect to all joint undertakings. The main conclusions drawn from the analysis are that (1) a less than optimal amount of resources will be devoted to an alliance or other international organization; (2) the burden of an alliance will be borne in a disproportional way, the larger members paying more than their proportional share. Empirical data from NATO and the United Nations are presented in support of these conclusions.