I study a self-enforcing mechanism for an international organization that interacts repeatedly over time. A random shock determines which countries would be in favor of or against taking a collective action. Thus, if the organization wants to take the action, incentives must be provided. I show that the optimal stationary equilibrium is equivalent to a mechanism characterized by voting weights. I study how this optimal mechanism depends on the discount factor. In particular, I show that within a class of parameter cases, the optimal mechanism mimics the way voting power is distributed among UN members via Security Council seats.
Standard economic theory would predict that costly demands placed by the United Nations on its members should be rewarded. Similarly, when rewards are not attractive enough, countries are not expected to comply with such demands. In this paper, we study whether the rewards offered by the United Nations are seats at the Security Council. We show empirically that countries that have greater demands placed upon them by Security Council resolutions are more likely to be elected. Furthermore, although countries comply with resolutions leading up to their election, compliance decreases after they are elected. Finally, we show that countries that have not been in the Security Council recently, and thus are due for election, have additional requests made of them.
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