What are the calculations of states in the international system when it comes to cooperation in
the area of prohibition? By shifting the focus from normative policy outcomes to the importance
of relationship-specific negotiation incentives this work helps to explain the emergence and
stability of international regimes in terms of the regulation of drugs and small arms light
weapons (SALW). It develops a model which focuses on the interplay between transaction and
governance costs in order to explain the varying extent of cooperation we observe in
international prohibition.