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Author:Harstad, B.
Title:Flexible integration? Mandatory and minimum participation rules
Journal:Scandinavian Journal of Economics
2006 : VOL. 108:4, p. 683-702
Index terms:co-operation
free riders
integration
Freeterms:coalitions
Language:eng
Abstract:An important question concerning European Union is whether s subset of the members should be allowed to form inner clubs and enhance cooperation. It suggested that flexible cooperation allows members to participate if and only if they benefit, but it leads to free-riding when externalities are positive. This article shows that flexible cooperation is better if the heterogeneity is large and the externality small, but that rigid cooperation is the political equilibrium too often.
SCIMA record nr: 264976
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