Using the concept of 'incomplete contracts' - agreements that are intentionally ambiguous and subject to renegotiation, this title explains how states divide and transfer their sovereign territory and functions, and demonstrates why some of these arrangements offer stable and lasting solutions while others ultimately collapse.

List of Illustrations and Tables ix Preface xi Chapter 1. Incomplete Sovereignty and International Relations 1 Chapter 2. A Theory of Incomplete Contracting and State Sovereignty 19 Chapter 3. Severing the Ties That Bind: Sovereign Transfers in the Shadow of Empire 48 Appendix 3.1. Overseas Basing Deployments of France and Britain since 1970 97 Chapter 4. Incomplete Contracting and the Politics of U.S. Overseas Basing Agreements 100 Chapter 5. Incomplete Contracting and Modalities of Regional Integration 142 Chapter 6. Further Applications and Conclusions 186 Bibliography 207 Index 225

"Contracting States is a brilliant and original book—a long-overdue addition to international relations theory. Extending insights from incomplete contracting theory and conceiving of sovereignty as a bundle of 'tradable' rights, Cooley and Spruyt offer a unified analytical framework that sheds fresh light on seemingly disparate key events, including regional integration, state formation, and territorial fragmentation."—Walter Mattli, St. John's College, University of Oxford

"Contrary to the common image of state sovereignty as unitary and absolute, Cooley and Spruyt examine the many situations in which sovereignty rights are shared or transferred: decolonization, foreign military bases, water rights, ethnic federalism, and more. Their use of the concept of incomplete contracting to shed light on a huge range of historical and contemporary bargaining processes is as timely as today's news stories about Russia's gas pipeline price gouging."—Jack Snyder, Columbia University

"Contracting States is an extraordinary undertaking that challenges us to see the foundations of successful international cooperation in a new light. This is likely to be a seminal work that defines the terms of the debate about sovereignty and governance for years to come."—Philip G. Roeder, University of California, San Diego

"Contracting States adds a great deal to our understanding of mixed forms of sovereignty. It not only poses an interesting puzzle but provides a sophisticated theoretical framework and leaves the reader with useful policy prescriptions for hybrid governance structures. This book makes a significant contribution to the literature. I learned a great deal from Contracting States."—Katja Weber, Georgia Institute of Technology

Contracting States is a brilliant and original book--a long-overdue addition to international relations theory. Extending insights from incomplete contracting theory and conceiving of sovereignty as a bundle of 'tradable' rights, Cooley and Spruyt offer a unified analytical framework that sheds fresh light on seemingly disparate key events, including regional integration, state formation, and territorial fragmentation. -- Walter Mattli, St. John's College, University of Oxford Contrary to the common image of state sovereignty as unitary and absolute, Cooley and Spruyt examine the many situations in which sovereignty rights are shared or transferred: decolonization, foreign military bases, water rights, ethnic federalism, and more. Their use of the concept of incomplete contracting to shed light on a huge range of historical and contemporary bargaining processes is as timely as today's news stories about Russia's gas pipeline price gouging. -- Jack Snyder, Columbia University Contracting States is an extraordinary undertaking that challenges us to see the foundations of successful international cooperation in a new light. This is likely to be a seminal work that defines the terms of the debate about sovereignty and governance for years to come. -- Philip G. Roeder, University of California, San Diego Contracting States adds a great deal to our understanding of mixed forms of sovereignty. It not only poses an interesting puzzle but provides a sophisticated theoretical framework and leaves the reader with useful policy prescriptions for hybrid governance structures. This book makes a significant contribution to the literature. I learned a great deal from Contracting States. -- Katja Weber, Georgia Institute of Technology