Neoliberalism (international relations)

In the study of international relations, neoliberalism refers to a school of thought which believes that states are, or at least should be, concerned first and foremost with absolute gains rather than relative gains to other states. Neoliberalism is not the same as neoliberal economic ideology, although both theories use common methodologies, which include game theory.

Neoliberal international relations thinkers often employ game theory to explain why states do or do not cooperate; since their approach tends to emphasize the possibility of mutual wins, they are interested in institutions which can arrange jointly profitable arrangements and compromises.

Neoliberalism is a response to Neorealism; while not denying the anarchic nature of the international system, neoliberals argue that its importance and effect has been exaggerated. The neoliberal argument is focused on neorealists' alleged underestimation of "the varieties of cooperative behavior possible within ... a decentralized system." Both theories, however, consider the state and its interests as the central subject of analysis; neoliberalism may have a wider conception of what those interests are.

Neoliberalism argues that even in an anarchic system of autonomous rational states, cooperation can emerge through the cultivation of mutual trust and the building of norms, regimes and institutions.

In terms of the scope of international relations theory and foreign interventionism, the debate between Neoliberalism and Neorealism is an intra-paradigm one, as both theories are positivist and focus mainly on the state system as the primary unit of analysis.

Robert Keohane and Joseph Nye are considered the founders of the neoliberal school of thought; Keohane's book After Hegemony is a classic of the genre. Other major influences are the hegemonic stability theory of Stephen Krasner and the work of Charles P. Kindleberger, among others.

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