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The Stability of International Environmental Coalitions with Farsighted Countries: Some Theoretical Observations

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Working paper
Author/s: 
Giulio Ecchia and Marco Mariotti
Issue number: 
1997.014
Publisher: 
FEEM
Year: 
1997
We study a three-country model of international environmental agreements where countries may choose either to limit their emissions or to behave noncooperatively. First, we provide a taxonomy of various kinds of strategic situations. Then, by applying some recently developed game-theoretic techniques, we show that if countries are ‘farsighted’ then there is scope for self- enforcing cooperation in several such situations.
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