When the Claim Hits: Bilateral Investment Treaties and Bounded Rational Learning
Lauge N. Skovgaard Poulsen and
Additional contact information
Lauge N. Skovgaard Poulsen: London School of Economics and Political Science
Crawford School Research Papers from Crawford School of Public Policy, The Australian National University
Using the international investment regime as its point of departure, the paper introduces notions of bounded rationality to the study of economic diplomacy. Through a multi-method approach, it shows that developing countries often ignored the risks of bilateral investment treaties (BITs) until they themselves became subject to an investment treaty claim. Thus the behavior of developing country governments with regard to the international investment regime is consistent with that observed for individuals in experiments and field studies: they tend to ignore high-impact, low-probability risks if they cannot bring specific 'vivid' instances to mind.
Keywords: bounded rationality; international political economy; international economic law; bilateral investment treaties (search for similar items in EconPapers)
JEL-codes: D03 F00 F02 F13 F20 F21 F23 F51 F53 F55 K33 (search for similar items in EconPapers)
Pages: 50 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Working Paper: When the claim hits: bilateral investment treaties and bounded rational learning (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:een:crwfrp:1105
Access Statistics for this paper
More papers in Crawford School Research Papers from Crawford School of Public Policy, The Australian National University Contact information at EDIRC.
Bibliographic data for series maintained by David Stern ().