Abstract

In reaction to major flooding, local governments in Minnesota and North Dakota formed a cooperative network to construct a $1.2 billion flood diversion along the Red River of the North. Threatened by this diversion, a second set of governments formed their own network in opposition to flood policy. This study uses propositions derived from the Institutional Collective Action framework to examine formal contracts at the core of these cooperative networks, as well as the circumstances under which the contracts were negotiated. It considers the ability of the framework to understand interlocal cooperation where regional consensus is nonexistent. The study finds that the two sets of governments faced very different transaction costs, resulting in contrasting approaches to governance.

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