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Choosing a Model out of Many Possible Alternatives: Emissions Trading as an Example

In: Experimental Business Research

Author

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  • Tatsuyoshi Saijo

    (Osaka University)

Abstract

The main purpose of this paper is to consider how to choose a model when there are many possible alternatives to choose from. We use global warming, especially, emissions trading, as an example. First, we describe each model in a very simple setting and then consider implicit and explicit assumptions underlying each model. In other words, we try to identify the environments in which the model really works. Our models yield results that may be different or occasionally inconsistent. In order to evaluate the results, we argue that the setting of the models and the implications of their implicit assumptions are important.

Suggested Citation

  • Tatsuyoshi Saijo, 2005. "Choosing a Model out of Many Possible Alternatives: Emissions Trading as an Example," Springer Books, in: Amnon Rapoport & Rami Zwick (ed.), Experimental Business Research, chapter 0, pages 47-81, Springer.
    • Handle: RePEc:spr:sprchp:978-0-387-24243-9_3
    DOI: 10.1007/0-387-24243-0_3
    as

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