Economic Theory of the Rise of Jus Ad Bellum Norms Under International Law

Abstract: The core idea of the paper rests in exploring the main economic rationale behind the formation of international norms, regulating the interstate use of force. It seeks to determine the important features of these international legal constructions through lens of functional institutionalism. We argue that jus ad bellum norms under international law constitute specific institutional arrangements, which were designed and implemented by relevant stakeholders in order to construct the social context, address informational asymmetries, reduce strategic uncertainty between the parties and subsequently, act as (bounded) welfare-enhancing practices within the international markets of state jurisdictions. We propose that introduction of international norms governing interstate military conflicts, constitutes an important attempt to reduce the significant transaction costs of laissez-faire interactions between the main political units within the domain of war and peace, by means of institutionalization.