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A short note on joint welfare maximization assumptions

Author

Listed:
  • Dritan Osmani
  • Richard S.J. Tol

    (Economic and Social Research Institute, Dublin, Ireland)

Abstract

Non-cooperative game theoretical models of international environmental agreements (IEAs) use the assumption that coalition of signatories maximize their joint welfare. The joint maxi- mization assumption is compared with di®erent sharing pro¯t schemes such as Shapley value, Nash bargaining solution and Consensus Value. The results show that the joint welfare max- imization assumption is similar with Nash Bargaining solution.

Suggested Citation

  • Dritan Osmani & Richard S.J. Tol, 2007. "A short note on joint welfare maximization assumptions," Working Papers FNU-150, Research unit Sustainability and Global Change, Hamburg University, revised Oct 2007.
    • Handle: RePEc:sgc:wpaper:150
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    References listed on IDEAS

    as
    1. Chander, Parkash & Tulkens, Henry, 2006. "Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion," Coalition Theory Network Working Papers 12170, Fondazione Eni Enrico Mattei (FEEM).
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    4. Parkash Chander & Henry Tulkens, 2006. "The Core of an Economy with Multilateral Environmental Externalities," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 153-175, Springer.
    5. Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2006. "Stable International Environmental Agreements: An Analytical Approach," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(2), pages 247-263, May.
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    7. Effrosyni Diamantoudi & Eftichios S. Sartzetakis, 2018. "International Environmental Agreements—The Role of Foresight," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 71(1), pages 241-257, September.
    8. Parkash Chander & Henry Tulkens, 2006. "A Core-Theoretic Solution for the Design of Cooperative Agreements on Transfrontier Pollution," Springer Books, in: Parkash Chander & Jacques Drèze & C. Knox Lovell & Jack Mintz (ed.), Public goods, environmental externalities and fiscal competition, chapter 0, pages 176-193, Springer.
    9. Dritan Osmani & Richard S.J. Tol, 2005. "The case of two self-enforcing international agreements for environmental protection," Working Papers FNU-82, Research unit Sustainability and Global Change, Hamburg University, revised May 2006.
    10. Carlo Carraro & Johan Eyckmans & Michael Finus, 2006. "Optimal transfers and participation decisions in international environmental agreements," The Review of International Organizations, Springer, vol. 1(4), pages 379-396, December.
    11. Yuan Ju & Peter Borm & Pieter Ruys, 2007. "The consensus value: a new solution concept for cooperative games," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(4), pages 685-703, June.
    12. Tol, Richard S. J., 2001. "Equitable cost-benefit analysis of climate change policies," Ecological Economics, Elsevier, vol. 36(1), pages 71-85, January.
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    14. Nash, John, 1950. "The Bargaining Problem," Econometrica, Econometric Society, vol. 18(2), pages 155-162, April.
    15. Dritan Osmani & Richard S.J. Tol, 2007. "Toward Farsightedly Stable International Environmental Agreements, Part two," Working Papers FNU-149, Research unit Sustainability and Global Change, Hamburg University, revised Oct 2007.
    16. Dritan Osmani & Richard Tol, 2009. "Toward Farsightedly Stable International Environmental Agreements," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(3), pages 455-492, June.
    17. Chander, Parkash & Tulkens, Henry, 2006. "Cooperation, Stability and Self-Enforcement in International Environmental Agreements: A Conceptual Discussion," Coalition Theory Network Working Papers 12170, Fondazione Eni Enrico Mattei (FEEM).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    game theory; coalition formation; joint welfare maximization; Shapley value; Nash bargaining solution; Consensus Value; international environmental agreements;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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