For Whom is MAI? A theoretical Perspective on Multilateral Agreements on Investments

residual MAI is instead impossible, because, when ° < °l, it occurs that ¢E <
0; when β = °: □

A.6 Appendix 6.

We prove here that there exist parameter constellations where countries gain
from participating to a partial MAI compared with what they could get in a
world without MAI. The condition for having a negative value for μPMZ is

We see that

Recall that by (25) of appendix A.3

P =_______________β^t (1 - β*)_______________

z (β* - °)(1 - β* + °)(1 - z) + zβ* (1 - β*) ;

@ (P=z)            1 (1 - 2βι)(1 - 2βι - °)

_ _ ...                     --- --- “                                                         :

@^β    '■' ^{0:5      2} (4 - ¹ βι +2βι°² - °²)

Since we are considering a partial MAI equilibrium, by Proposition 4 we need
°_l <°<°_u . The only ambiguous term in (33) is (1 - 2β_l - °), which is
decreasing in °. Plugging the highest possible value for ° (i.e., °_u) into this
term we find

^{1 -} 2^βι^{- -}~ 2+6 q21+¹2^{β2 -} 3^oβι;              (³⁴)

<<   23   24   25   26   27   28   29   >>

More intriguing information