It is often said economics has become as important as security in
international relations. What goes on when government negotiators
bargain over trade frictions, exchange rates, debts, and the rules
of international economic organizations? Does their behavior have
significant effects? Variations in the process of economic
negotiation make a substantial difference to the outcomes of
international economic issues, John S. Odell says, and the process
can be understood and practiced better than it is now.
Odell identifies strategies used by actual negotiators, and
explains strategy choice as well as why the same strategy can gain
more in some situations and less in others. Focusing on ten major
economic negotiations since 1944 that have involved the United
States, Odell identifies three broad factors -- changing market
conditions, negotiator beliefs and biases, and domestic politics --
as influences on strategies and outcomes. He depicts economic
bargaining as neither purely distributive struggle nor win-win
accommodation. He develops a theory premised on bounded
rationality, setting it apart from the most common form of rational
choice as well as from views that reject rationality. He closes
with suggestions for improving negotiation performance today. The
main ideas are relevant for any country and for all who may be
affected by economic bargaining.
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