How Are States Constrained by IGOs

question 58

Multiple Choice

How are states constrained by IGOs?

• A) States are forced to pay high membership dues.
• B) States are subject to binding regulations set by such organizations.
• C) States must align their policies to norms and rules of behavior created by IGOs if they are to benefit from membership in these organizations.
• D) States must have democratic elections.
• E) States must renounce the use of force against other member states.

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Definitions:

Nash Equilibrium

A concept within game theory where no player can benefit by changing strategies while the other players keep theirs unchanged.

Bertrand Model

An economic model of competition among firms that compete by setting prices simultaneously.

Payoff Matrix

A table that shows the payoffs for each player in a game for every possible combination of actions by the players.

Economic Profits

The financial gain achieved when revenues exceed both explicit and implicit costs.