Table of Contents
Posturing Parliaments: Ratification, Uncertainty, and International
Bargaining
Eric Reinhardt
Table of Contents i
List of Tables vi
List of Figures vii
Acknowledgments viii
Chapter Two: The Theory 19
2.1. The Theory 19
2.1.1 Assumptions 20
2.1.2 Ratification 22
2.1.3 Uncertainty about Legislators' Preferences 26
2.1.4 Legislative Signaling and Rhetoric 30
2.1.5 Legislative Rhetoric is Partially Informative and Influential
32
2.1.6 Uncertainty Promotes Cooperation 37
2.1.7 Uncertainty Reduces Bargaining Power 40
2.1.8 Other Strategic Implications 43
2.1.9 Special Cases of the Theory 45
2.2. The Model 50
2.2.1 Basic Setup of Model 51
2.2.2 Benchmark Cases 66
2.2.3 Results 67
2.2.4 Comparative Statics 77
2.3. Conclusion 86
Appendix 2.1: Formal Definitions, Propositions, and Proofs 87
Appendix 2.2: Guide to Notation 101
Chapter Three: Institutionalizing Uncertainty 103
3.1. Introduction 103
3.2. Sources of Uncertainty about Legislators' Preferences 104
3.2.1 Legislative Turnover 106
3.2.2 Party Structure 110
3.2.3 Elections 115
3.2.4 Centralization of the Legislature 118
3.2.5 Party Discipline 121
3.2.6 Measures of Uncertainty Using Estimates of Ideal Points 125
3.3. The Role of Special Cases of the Theory 129
3.4. Competing Theories of International Bargaining Outcomes 131
3.4.1 Distribution of Power 131
3.4.2 International Institutions 135
3.4.3 Other Arguments 137
3.5. Research Design 138
3.5.1 The Problem of Case Selection 139
3.5.2 Available Evidence 141
3.5.3 Methodology in the Dissertation 142
Chapter Four: Efficiency and Distribution in GATT Dispute Outcomes
147
4.1. Introduction 147
4.2. The Argument: Ratification, Uncertainty, and International Bargaining
154
4.2.1 The Strategic Consequences of Uncertainty 155
4.2.2 Efficiency and Distributional Effects of Uncertainty 157
4.2.3 Institutionalizing Uncertainty 158
4.3. The Testing Ground: GATT Disputes 165
4.3.1 Why GATT Disputes? 165
4.3.2 The GATT Dispute Process 166
4.3.3 The Database 168
4.4. Characterizing Efficiency and Distribution in GATT Dispute Outcomes
169
4.4.1 Cooperation 171
4.4.2 Bargaining Power 173
4.5. The Empirical Models 174
4.5.1 Components of the Models 174
4.5.1.1 Realism 174
4.5.1.2 Neoliberal Institutionalism 176
4.5.1.3 Other Arguments 179
4.5.1.4 The Domestic Institutional Argument 180
4.5.2 Model Specification 184
4.6. Estimation Results 186
4.6.1 Cooperation 186
4.6.2 Bargaining Power 191
4.7. Interpretation of Results 196
4.7.1 The Domestic Institutional Argument 197
4.7.1.1 Party Turnover 197
4.7.1.2 The Party Structure 198
4.7.1.3 Elections 199
4.7.1.4 Divided Government 201
4.7.2 Alternative Explanations 204
4.8. Conclusion 209
Appendix 4.1: A Survey of GATT Disputes 213
Appendix 4.2: The Database of GATT Disputes, 1948-1993 221
Chapter Five: Three Case Studies of International Bargaining over Trade
257
5.1. Introduction 257
5.2. The Cases 259
5.2.1 Goals 259
5.2.2 Case Selection 261
5.2.3 Pre9cis of the Cases 261
5.3. An Udder Mess: The US-Canada Dairy Dispute, 1988-1991 266
5.3.1 Background and History of the Dairy Dispute 266
5.3.2 The Uncertainty Explanation 275
5.3.2.1 The Parliamentary Role 276
5.3.2.2 Uncertainty and Institutions 280
5.3.2.2.1 Uncertainty about the Canadian Parliament 280
5.3.2.2.2 Canadian Institutions 282
5.3.2.2.3 Uncertainty about the US Congress 291
5.3.2.2.4 US Institutions 293
5.3.2.3 Parliamentary Posturing and Bargaining Outcomes 316
5.3.3 Other Explanations of the Dairy Dispute 322
5.3.4 Assessment of the Dairy Dispute 324
5.4. Seeds of Conflict: The US-EC Oilseeds Dispute, 1988-1993 327
5.4.1 Background and History of the Oilseeds Dispute 328
5.4.1.1 Economic Background 328
5.4.1.2 Chronology of the Oilseeds Dispute 331
5.4.1.3 The Oilseeds Dispute Outcome 344
5.4.2 The Uncertainty Explanation 351
5.4.2.1 The Parliamentary Role 352
5.4.2.2 Uncertainty and Institutions 356
5.4.2.2.1 Uncertainty about the EC Council of Ministers 356
5.4.2.2.2 EC Institutions 358
5.4.2.2.3 Uncertainty about the US Congress 366
5.4.2.2.4 US Institutions 366
5.4.2.3 Parliamentary Posturing and Bargaining Outcomes 372
5.4.3 Other Explanations of the Oilseeds Dispute 383
5.4.4 Assessment of the Oilseeds Dispute 385
5.5. Head-On Collision: The US-Japan Auto Dispute, 1993-1995 387
5.5.1 Background and History of the Auto Dispute 388
5.5.1.1 Economic Background 388
5.5.1.2 Chronology of the Auto Dispute 390
5.5.1.3 The Auto Dispute Outcome 394
5.5.2 The Uncertainty Explanation 403
5.5.2.1 The Parliamentary Role 404
5.5.2.2 Uncertainty and Institutions 407
5.5.2.2.1 Uncertainty about the Japanese Diet 408
5.5.2.2.2 Japanese Institutions 410
5.5.2.2.3 Uncertainty about the US Congress 424
5.5.2.2.4 US Institutions 425
5.5.2.3 Parliamentary Posturing and Bargaining Outcomes 429
5.5.3 Other Explanations of the Auto Dispute 439
5.5.4 Assessment of the Auto Dispute 442
5.6. Conclusion 445
5.6.1 Background Claims and Assumptions 445
5.6.2 Claims about Institutions 448
5.6.3 Claims about Uncertainty and International Bargaining 454
5.6.4 Overall Assessment 456
Chapter Six: Conclusion 458
6.1. Bargaining in the Shadow of Uncertainty 458
6.1.1 Uncertainty, Parliamentary Posturing, and Bargaining Outcomes
460
6.1.2 The Weight of Evidence 467
6.2. Limitations of the Argument 468
6.3. Implications 473
6.3.1 How Domestic Politics Influences International Bargaining 473
6.3.2 Implications for International Relations Theory 478
6.3.3 What the Practitioner Should Know 479
Bibliography 484
List of Tables
Table 2.1: Effects of Uncertainty about Legislators' Preferences on
International Bargaining 43
Table 4.1: The Hypothesized Models 178
Table 4.2: Results of Ordered Probit Models of Level of Cooperation
190
Table 4.3: Results of Ordered Probit Models of Bargaining Power 195
Table 4.4: Expectations versus Results 200
Table 4.5: Summary Statistics on GATT Trade Disputes, 1948-1993 217
Table 4.6: Descriptive Statistics on GATT Dispute Database Variables
218
Table 4.7: Bivariate Correlations among GATT Dispute Database Variables
219
Table 5.1: Summary of the Cases 265
Table 5.2: Data on Political Parties in the Canadian House of Commons,
1988-1991 285
Table 5.3: Data on Political Parties and Turnover in the US Congress,
1987-
1995 297
Table 5.4: Data on Party Discipline in the US Congress, 1987-1994 299
Table 5.5: Japanese Political Parties: Seats in the House of Representatives
and Membership in the Governing Coalition 423
List of Figures
Figure 2.1: The Bargaining Space 57
Figure 2.2: Sequence of Moves 60
Figure 2.3: Characterization of Congressional Types 64
Figure 2.4: Various Equilibrium Proposals as a Function of q
68
Figure 2.5: How the Proposal Depends on
in an Equilibrium with a Single Elicited Proposal 72
Figure 2.6: A Sample Equilibrium with Two Elicited Proposals 75
Figure 2.7: Values of as a Function of q that Numerically Solve
(2.11) 93
Figure 2.8: The Set of Expected Utility Pairs for the President and
Foreign Negotiator 99
Figure 3.1: Example of Range of Possible Locations of Swing Voter in
Two-Party versus Multiparty Legislatures 113
Figure 3.2: Summary of Argument with Domestic Institutional Variables
128
Figure 3.3: Competing Arguments 138
Figure 4.1: Outline of the Argument 164
Figure 4.2: The Occurrence of GATT Disputes over Time 216
Figure 5.1: Party Discipline in the US Congress, 1945-1995 300
Figure 5.2: Seniority in the US House and Senate, from the 83rd through
the 103rd Congress 314
Figure 5.3: Personal and Standing Committee Staff in the US Congress,
1947-1991 315
Figure 5.4: Selected Uncertainty Indicators from the US Congress, 1947-1991:
The Number of Committees and Multiple Referrals 316
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