In this exercise, we provide a couple examples of the
successful use of brinkmanship, where “success” is indicative of the two sides’
reaching a mutually acceptable deal. For each example,
(i) identify the interests of the parties;
(ii) describe the nature of the uncertainty inherent in
(iii) give the strategies the parties used to escalate
the risk of disaster;
(iv) discuss whether the strategies were good ones; and
(v) (Optional) if you can, set up a small mathematical
model of the kind presented in this chapter. In each case, we provide a few
readings to get you started; you should locate more by using the resources of
your library and resources on the World Wide Web such as Lexis-Nexis.
(a) The Uruguay Round of international trade negotiations
that started in 1986 and led to the formation of the World Trade Organization
in 1994. Reading: John H. Jackson, The World Trading System, 2nd ed. (Cambridge,
Mass.: MIT Press, 1997), pp. 44–49 and ch. 12 and 13.
(b) The Camp David Accords between Israel and Egypt in
1978. Reading: William B. Quandt, Camp David: Peacemaking and Politics
(Washington, D.C.: Brookings Institution, 1986).