legal problems. 26 At its core, the relevant similarity is that international society, like any society, is a place where individual actors or groups of actors encounter one another and sometimes have occasion to cooperate, to engage in what may broadly be termed"transactions. 27 This analogy has been developed by, interalia, Abbott, Keohane, Krasner and Waltz. In this literature, markets are understood to arise out of the activities of individual persons or firms. These individuals seek to further their self-defined interests through the most efficacious means available. while each individual acts for himself, from the action of like units emerges a structure that affects and constrains all of them. Once formed a market becomes a force in itself and a force that the consitutive units acting singly or in small numbers cannot control. 28 So too for the international system. Like economic markets, the international system is formed by the interactions of self-regarding units --largely but not exclusively, states. These utilitarian states interact to "overcome the deficiencies that make it impossible to consummate mutually beneficial agreements. 29 Actors in each system are willing-to some extent--to relinquish autonomy in order to obtain certain benefits 30 Both the international and the domestic systems, then, are individualist in origin, spontaneously generated and unintended products of elf-interested behavior 31 The assets traded in this international"market are not goods or services per se, but assets peculiar to states: components of power. In a legal context, power is jurisdiction, including jurisdiction to prescribe, jurisdiction to adjudicate and jurisdiction to enforce. In international ociety, the equivalent of the market is simply the place where states interact to cooperate on articular issues--to trade in power--in order to maximize their baskets of preferences States enter the market of international relations in order to obtain gains from exchange For present purposes, we can understand the structure of this market as follows: Beginning from the state of nature. the first level of "trade" is that which establishes constitutional rules rules about 26 In drawing these analogies, we do not intend to participate in larger international legal debates over appropriateness of the"domestic analogy. See, e.g., HIDEMI SUGANAMI, THE DOMESTIC ANALOGY AND WORLD ORDER PROPOSALS (1989); Burley, supra note 2, at 239 n 13 27The most fundamental unit of analysis in economic organization theory is the transaction-- the transfer of goods or services from one individual to another Paul mILGROM john ROBERTS, ECONOMICS, ORGANIZATION AND MANAGEMENT 21(1992) 28 KENNETH N. WALTZ, THEORY OF INTERNATIONAL POLITICS XXX(1979) 29 ROBERT O. KEOHANE, AFTER HEGEMONY: COOPERATION AND DISCORD IN THE WORLD POLITICAL ECONOMY 83(1984) 30 In fact, the contractarian model is more easily applicable to the international system than to the domestic, as the international system has more viable exit options 31 KEOHANE, supra note 30, at 83legal problems.26 At its core, the relevant similarity is that international society, like any society, is a place where individual actors or groups of actors encounter one another and sometimes have occasion to cooperate, to engage in what may broadly be termed “transactions.” 27 This analogy has been developed by, inter alia, Abbott, Keohane, Krasner and Waltz. In this literature, markets are understood to arise out of the activities of individual persons or firms. These individuals seek to further their self-defined interests through the most efficacious means available. While each individual acts for himself, “[f]rom the action of like units emerges a structure that affects and constrains all of them. Once formed, a market becomes a force in itself, and a force that the consitutive units acting singly or in small numbers cannot control.”28 So too for the international system. Like economic markets, the international system is formed by the interactions of self-regarding units -- largely, but not exclusively, states. These utilitarian states interact to “overcome the deficiencies that make it impossible to consummate . . . mutually beneficial agreements.”29 Actors in each system are willing--to some extent--to relinquish autonomy in order to obtain certain benefits.30 Both the international and the domestic systems, then, are individualist in origin, spontaneously generated and unintended products of self-interested behavior.31 The assets traded in this international “market” are not goods or services per se, but assets peculiar to states: components of power. In a legal context, power is jurisdiction, including jurisdiction to prescribe, jurisdiction to adjudicate and jurisdiction to enforce. In international society, the equivalent of the market is simply the place where states interact to cooperate on particular issues--to trade in power--in order to maximize their baskets of preferences. States enter the market of international relations in order to obtain gains from exchange. For present purposes, we can understand the structure of this market as follows: Beginning from the state of nature, the first level of "trade" is that which establishes constitutional rules: rules about 26 In drawing these analogies, we do not intend to participate in larger international legal debates over appropriateness of the “domestic analogy.” See, e.g., HIDEMI SUGANAMI, THE DOMESTIC ANALOGY AND WORLD ORDER PROPOSALS (1989); Burley, supra note 2, at 239 n. 13. 27 "The most fundamental unit of analysis in economic organization theory is the transaction-- the transfer of goods or services from one individual to another." PAUL MILGROM & JOHN ROBERTS, ECONOMICS, ORGANIZATION AND MANAGEMENT 21 (1992) 28 KENNETH N. WALTZ, THEORY OF INTERNATIONAL POLITICS xxx (1979). 29 ROBERT O. KEOHANE, AFTER HEGEMONY: COOPERATION AND DISCORD IN THE WORLD POLITICAL ECONOMY 83 (1984). 30 In fact, the contractarian model is more easily applicable to the international system than to the domestic, as the international system has more viable exit options. 31 KEOHANE, supra note 30, at 83. 10