Mahlstein, Kornel; Schropp, Simon A. B. - 2007
(WTO) is an incomplete contract among sovereign states. Incomplete contracts contain gaps. Ex post, contractual gaps may … backtracking behavior. This paper examines the somewhat understudied issue of optimal trade policy flexibility design in the WTO … 'liability rule' of escape), or a bilateral renegotiation provision (a 'property rule' of escape). Modeling the WTO as a fully …