Hierarchy Amidst Anarchy: Transaction Costs and Institutional Choice

Focusing on state security provisions, the book explores the motivations behind international cooperation among states. It challenges traditional theories that emphasize power dynamics, proposing instead that economic theories, particularly transaction costs, are central to understanding countries' choices in forming international institutions. Through cross-sectional studies of two distinct historical periods—the final years of the Napoleonic Wars and the post-1945 era—it examines contrasting security structures like NATO and the European Defense Community to illustrate its arguments.