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Interconnected games and international environmental problems

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  • Henk Folmer
  • Pierre Mouche
  • Shannon Ragland

Abstract

The purpose of this paper is to introduce the concept of interconnected games and to show its relevance for modeling international environmental problems. It is argued that an interconnected game approach to international environmental problems may enhance cooperation and provide an alternative to the use of financial side payments to induce countries to cooperate. Two types of interconnected games are distinguished in this paper, i.e. direct sum games and tensor games. In the former all the constituting isolated games are games in strategic form and in the latter they are repeated games. In both cases the interconnected game can be interpreted as a multiple objective game, but only the setting where a trade-off is made for the vector-payoffs is considered. In addition to the formal definition of these types of interconnected games, some elementary results concerning Nash equilibria of such games are derived. Copyright Kluwer Academic Publishers 1993

Suggested Citation

  • Henk Folmer & Pierre Mouche & Shannon Ragland, 1993. "Interconnected games and international environmental problems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(4), pages 313-335, August.
  • Handle: RePEc:kap:enreec:v:3:y:1993:i:4:p:313-335
    DOI: 10.1007/BF00418815
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    References listed on IDEAS

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    1. Hansen, Stein, 1989. "Debt for nature swaps -- Overview and discussion of key issues," Ecological Economics, Elsevier, vol. 1(1), pages 77-93, February.
    2. Henk Folmer & Charles Howe, 1991. "Environmental problems and policy in the Single European Market," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 1(1), pages 17-41, March.
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    Citations

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    Cited by:

    1. Jean-Christophe Pereau & Tarik Tazdait, 2001. "Co-operation and Unilateral Commitment in the Presence of Global Environmental Problems," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 20(3), pages 225-239, November.
    2. Scott Barret, 1998. "On the Theory and Diplomacy of Environmental Treaty-Making," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 317-333, April.
    3. Carsten Helm, 1998. "International Cooperation Behind the Veil of Uncertainty – The Case of Transboundary Acidification," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(2), pages 185-201, September.
    4. Martin Richardson & Frank Stähler, 2017. "International Agreements, Economic Sovereignty and Exit," ANU Working Papers in Economics and Econometrics 2017-657, Australian National University, College of Business and Economics, School of Economics.
    5. Frank Stähler, 1996. "On International compensations for environmental stocks," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 8(1), pages 1-13, July.
    6. Luciano Mendez & Rafael Trelles, 2000. "The Abatement Market A Proposal for Environmental Cooperation among Asymmetric Countries," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 16(1), pages 15-30, May.
    7. Nicola Acocella & Giovanni Bartolomeo & Wilfried Pauwels, 2010. "Is there any scope for corporatism in macroeconomic policies?," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 37(4), pages 403-424, November.
    8. Michael Finus & Stefan Maus, 2008. "Modesty May Pay!," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(5), pages 801-826, October.
    9. Kai Lessmann & Robert Marschinski & Michael Finus & Ulrike Kornek & Ottmar Edenhofer, 2014. "Emissions Trading with Non-signatories in a Climate Agreement—an Analysis of Coalition Stability," Manchester School, University of Manchester, vol. 82, pages 82-109, December.
    10. Jon Hovi & Arild Underdal & Hugh Ward, 2011. "Potential Contributions of Political Science to Environmental Economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 48(3), pages 391-411, March.
    11. Matthew McGinty, 2010. "International Environmental Agreements as Evolutionary Games," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 45(2), pages 251-269, February.
    12. Michael Finus & Bianca Rundshagen, 1998. "Renegotiation–Proof Equilibria in a Global Emission Game When Players Are Impatient," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 12(3), pages 275-306, October.
    13. Ana Espinola-Arredondo, 2009. "Free-Riding and Cooperation in Environmental Games," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(1), pages 119-158, February.

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