On balance, at least, hard legalization reduces the transactions costs of subsequent
interactions.34 Two types of interactions are especially relevant: one is the ‘‘managerial’’
process of applying and elaborating agreed rules; the other is the more adversarial
process of enforcing commitments. The role of international regimes in reducing
transactions costs—especially the costs of negotiating supplementary
agreements—has been extensively analyzed.35 That literature has not, however, distinguished
legalization from other institutionalforms.36