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Open Skies, Closed Markets: The Importance of Time in the Negotiation of International Air Transport

31 Pages Posted: 13 Aug 2009 Last revised: 20 Aug 2009

Cornelia Woll

Sciences Po Paris; Max Planck Society for the Advancement of the Sciences - Max Planck Institute for the Study of Societies

Date Written: 2009

Abstract

How can we explain an international agreement that fall outside of the win-set of one of the key players? This article surveys the US-EU Open Skies agreement signed in 2007 and asks why Europeans accepted the agreement after having rejected a comparable version three years earlier. Theoretical approaches that explain time inconsistency in international negotiations tend to focus on reasons why states can be constraint to accept suboptimal solutions. In multi-level bargaining, principal-agent theories focus on loss of control and constructivists suggest that governments can become trapped in rhetoric. This article shows that paradoxical agreements can be voluntary and explains them by adding a time dimension to classical multi-level bargaining analysis. In doing so, the case narrative thus provides an actor-centered account for the observation that flexible international agreements lead to greater commitment than rigid ones.

Keywords: international aviation, open skies, US, EU, two-level games, principal-agent theory, rhetorical traps

JEL Classification: F02, F13, F42, C70

Suggested Citation

Woll, Cornelia, Open Skies, Closed Markets: The Importance of Time in the Negotiation of International Air Transport (2009). APSA 2009 Toronto Meeting Paper. Available at SSRN: https://ssrn.com/abstract=1450441

Cornelia Woll (Contact Author)

Sciences Po Paris ( email )

27, rue Saint-Guillaume
Paris, 75007
France

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for the Study of Societies ( email )

Paulstr. 3
50676 Koln
Germany

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