Edited by Pierre Sauvé and Martin Roy
Chapter 15: The behavioural dynamics of positive and negative listing in services trade liberalization: A look at the Trade in Services Agreement (TiSA) negotiations
AbstractFrom a standard rational choice perspective, the choice architecture of an international trade in services liberalization scheme as structured around either positive or negative listing should not have any appreciable effect on the depth and breadth of commitments. In contrast, behavioral economics, in particular Prospect Theory and phenomena such as framing effects and status quo bias, suggest that a negative list approach would be more conducive to economic liberalization. Several additional complicating factors, such as sectoral considerations, negotiating asymmetries and transaction costs, preclude this hypothesis from being subjected to reliable empirical testing. However, a case study of the currently ongoing negotiations towards a plurilateral Trade in Services Agreement (TiSA), reveals that trade diplomats are acutely attuned to the potential importance of such negotiated ‘choice architecture’, and that behavioral effects can exert significant influence on negotiations. This demonstrates that behavioral dynamics, especially compromise effects, are a significant part of international trade talks, at least with respect to services trade.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.