MOTTA, Daniel augusto <br/><br/>
Political economy of preferential :  the case of bilateral asymmetric negotiation 

 - São Paulo :  Editora 34,  jul. /set. 2007 
<br/><br/> The purpose of this paper is to analyse the political economy of preferential trade agreements based on a sequential non-cooperative Stackelberg political game between a large economy and a small one, in which the political dispute of rival lobby groups defines the unilateral stance of both governments in the first stage and the Stackelberg “coalition-proof” equilibrium defines t the free trade agreement format in the second stage. Finally, a few modifications in the initial game structure are discussed in order to enhance the small economy’s negotiation power. The political economy model is applied to FTAA case