Multilateral economic sanctions can be expected to impose greaterterms‐of‐trade effects on a target nation than unilateral sanctions. Yet despite their potential for greater economic damage, multilateral sanctions often are less effective in bringing about desired political results in the target. An interest‐group model of endogenous policy suggests that multilateral sanctions can undermine the political effectiveness of opposition groups in the targetcountry, or strengthen those groups supporting the objectionable policy of the ruling regime. Such perverse effects are due in part to the inability of multilateral coalitions to enforce cooperation among members, and to the appropriation of sanctions rents in the target country. Unilateral sanctions, however, imposed by a country with close ties to the target, are ofteneffective in achieving their intended political objectives.

Wintrobe's (1990Wintrobe's ( , 1998 dictatorship model is adapted to examine the impacts of economic sanctions on an autocrat. It is shown that the dictator's choice of the level of power, and the quantities of loyalty and repression used as inputs in the production of power, are affected by the type and magnitude of sanctions and by the impact of sanctions on the political effectiveness of opposition groups. Sanctions have direct and indirect effects on the prices of loyalty and repression as well as potentially generating rents that might be captured either by the dictator or by the opposition.

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