Abstract
Investor state dispute settlement (ISDS) resolves disputes between foreign investors and host country governments about changes in regulation and other harmful measures. Economic theory provides a framework to evaluate the incentive and distributional effects of ISDS on the basis of game-theoretic models. These allow for an analysis of the role of information available to courts and its verifiability, the impact of ISDS on the amount of inward foreign investment, and the potential blocking of legitimate regulation. The chapter presents in a nontechnical way key elements of formal models and provides insights from selective articles in the theoretical literature on ISDS.
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Notes
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Janeba, E. (2020). Investor State Dispute Settlement and Host Country Regulation: Insights from Economic Theory. In: Chaisse, J., Choukroune, L., Jusoh, S. (eds) Handbook of International Investment Law and Policy. Springer, Singapore. https://doi.org/10.1007/978-981-13-5744-2_119-1
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DOI: https://doi.org/10.1007/978-981-13-5744-2_119-1
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