Leadership

On The Strategic Use Of Representative Democracy In International Agreements

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Executive Summary

The authors consider as endogenous the choice of the delegation' rule in a political integration process between two countries. They study three potential types of delegation: strong, weak or no delegation, this last case corresponding to a referendum. They show that populations decide to bind themselves by delegating the national policy decision to a "Powerful conservative representative", in order to improve their bargaining position. These non-cooperative behaviors of countries when they decide on their delegation rule induce negative political externalities between countries, which cancel the gains achieved by the internalization of economic externalities in the case of political integration.

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