The central argument of this book is that the empowerment of chairmanship institutions in international cooperation reflects a rational response by states to collective-action problems in decentralized bargaining, and enables formal leaders both to raise the likelihood of negotiation success and to favor their own preferred outcome. This chapter presents in greater detail the logic of this theoretical argument, summarized in Figure 2.1.

The theory of formal leadership draws on rational choice institutionalism, originally developed in the study of American politics and subsequently imported into IR theory: a view of politics as a series of contracting dilemmas that may prevent or inhibit mutually advantageous exchange; a functionalist approach to institutional choice and development; a conception of states as rational actors that behave instrumentally in the pursuit of their preferences; a recognition of the agency problems inherent in the processes of delegation; and a perspective on formal rules as enabling and constraining factors. Simultaneously, this theory integrates core elements of rationalist bargaining theory: a recognition of the collective-action problems involved in complex multilateral negotiations; an emphasis on the tension between cooperative and competitive negotiation moves; an appreciation of information as a bargaining asset; a perspective on leaders and entrepreneurs as strategic actors; and an analysis of negotiated outcomes in terms of efficiency and distribution. The epistemological affinity between the two literatures is substantial, and the scope for synergies in theory development significant and important.