To leave or to stay? Uruguay and Paraguay within the Mercosur

Abstract

The main objective of this paper is to show that when countries conforming a block that makes what some specialists have called: regionalism or integration -- having between them big asymmetries -- the policy to threat to leave the block can be a very efficient policy for those countries more harmed by the presence of such asymmetries. In particular in this article we analyze the current situation inside of the Southern Common Market or at it is better known in Latin America as MERCOSUR.Asymmetries, Integration, Nash Equilibria