A novel institution: the Zollverein and the origins of the customs union

  title={A novel institution: the Zollverein and the origins of the customs union},
  author={Florian Ploeckl},
  journal={Journal of Institutional Economics},
  pages={305 - 319}
  • Florian Ploeckl
  • Published 9 September 2020
  • Economics
  • Journal of Institutional Economics
Abstract The Zollverein, the outcome of sequential negotiations between Prussia and other sovereign German states in 1834, was the first international customs union, the template for modern ones such as the European Union. This paper applies a bargaining model to analyse the logic behind the creation of this novel institutional form and the choice of sequential rather than multilateral negotiations. The existence of negative coalition externalities, the effects of new coalitions on non… 


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