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 One: Introduction 1
  • 1.1. The Puzzle 1
  • 1.2. Domestic Uncertainty and International Bargaining: The Argument 5
  • 1.2.1 The Strategic Consequences of Uncertainty 6
  • 1.2.2 Efficiency and Distributional Effects of Uncertainty 9
  • 1.2.3 Special Cases of the Theory 11
  • 1.3. Institutionalizing Uncertainty 12
  • 1.4. Testing the Theory 13
  • 1.5. Contributions of the Dissertation 14
  • 1.6. Outline of the Dissertation 16
  • 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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