This book redefines the traditional understanding of state responsibility. It presents a compelling argument that international law's effectiveness hinges on its ability to protect not only state interests but also those of the global community. Drawing from principles established in the Articles on the Responsibility of States for Internationally Wrongful Acts (ARSIWA), the book examines how states, conceptualised as rational actors, navigate collective action challenges. Through a law and economics lens, it sheds light on the role of international state responsibility in providing global public goods and safeguarding common pool resources. This interdisciplinary book offers valuable insights and normative suggestions for enhancing the ARSIWA's efficacy in promoting community interests. It will appeal to scholars and practitioners in public international law, law and economics, and international relations, interested in a better understanding of international law's role in tackling pressing global issues.