The Trouble with Carrots: Transaction Costs, Conflict Expectations, and Economic Inducements
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This paper puts forward a rational choice explanation for the conditions when inducements are a feasible and preferable option. It does so by asking two questions. First, what prevents nation-states from using carrots more frequently? In other words, why are carrots not a ubiquitous feature of the international system? Second, how useful are carrots relative to other policy options? In other words, when will carrots be preferred over economic or military coercion?