Relative Gains Debate

- Grieco (1988) and other realists argue that NLI ignores relative gains problem

- NLI focuses on absolute gains, not relative gains (how much more or less does state A gain by cooperating with state B)

Quasi-Formal Terms

- V equals utility to state V from cooperation

- W equals utility to state W from cooperation

- NLI claim that Uv = V

- NR claims that Uv = V – k(W-V) where k is a coefficient representing V’s sensitivity to gaps in payoffs, ranging from near 0 to 1

Does Institutionalized Cooperation Minimize Relative Gains Concerns?

- Grieco argues that NLI does not show this

- Keohane et al argue that “diffuse” v. “specific” reciprocity captures RG concerns