Andriamananjara, Soamiely; Schiff, Maurice - In: Review of International Economics 9 (2001) 1, pp. 42-51
Owing to their low bargaining power and high negotiation costs, microstates face severe disadvantages when dealing with the outside world. Forming a group with neighboring nations might be an effective instrument to address this problem. This paper presents a model in which the decision to form,...