Country A and Country B are engaged in negotiations. The countries are on the brink of war over a diplomatic incident that occurred recently. Both countries commit to a de-escalation of violence. The UN acts as an observer during the process and sends peacekeeping troops to the region during the peace process. If either country defects on the ceasefire, they will be heavily sanctioned by all member states of the UN. What solution to the bargaining problem is evident in this situation?Question 11Select one:a.Unbundling issues b.Bounded rationalityc.Credible commitmentd.Perfect information
Question
Country A and Country B are engaged in negotiations. The countries are on the brink of war over a diplomatic incident that occurred recently. Both countries commit to a de-escalation of violence. The UN acts as an observer during the process and sends peacekeeping troops to the region during the peace process. If either country defects on the ceasefire, they will be heavily sanctioned by all member states of the UN. What solution to the bargaining problem is evident in this situation?Question 11Select one:a.Unbundling issues b.Bounded rationalityc.Credible commitmentd.Perfect information
Solution
The solution to the bargaining problem evident in this situation is c. Credible commitment. This is because both countries have committed to a de-escalation of violence and there are serious consequences (heavy sanctions by all member states of the UN) if either country defects on the ceasefire. The presence of the UN as an observer and the sending of peacekeeping troops also adds to the credibility of the commitment.
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