The politics of open international markets are frequently characterized as a Prisoners’ Dilemma, where states’ incentives to adopt protectionist policies are restrained by trading partners’ threat or use of retaliatory exclusion mechanisms. However, because Ricardian theories of comparative advantage suggest that unilateral trade openness enhances aggregate welfare, states whose domestic political institutions are encompassing – where the policymaker is responsive to a large proportion of the population and can authoritatively coordinate policy across diverse issues – have incentives to support open international markets without the threat or use of retaliatory mechanisms by other states. This explanation for the existence of an open international market has implications for theoretical and empirical research in international organization, as well as for discussions on the possibility of ‘self-contained regimes’ in international legal scholarship.
