Intersectoral Alliances

Intersectoral alliances - forms of cooperation between the private and public sector as well as civil society - have received increasing attention. In particular in the context of globalization, these new forms of governance are supposed to overcome the limitations of individual sectors and to solve pressing problems of humankind. From the perspective of institutional economics this study analyzes which conditions are required in order for intersectoral alliances to work. It applies the methodological framework of a social dilemma in which individually rational behavior leads to collectively undesired outcomes. The study develops a model of intersectoral alliances to evaluate different constellations of incentives that alliance members might face. It shows which conditions lead to suboptimal levels of cooperation and discusses the implications for the management of intersectoral alliances.