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Potentially Harmful International Cooperation on Global Public Good Provision

Buchholz, Wolfgang; Cornes, Richard; Rubbelke, Dirk

Description

Experience from climate policy suggests that full cooperation among all countries is not a likely outcome. In this paper we therefore consider the case where only members of a subgroup of countries cooperate by reciprocally matching their public good contributions. In a two-stage game, matching rates are set at stage 1 then national contributions are chosen at stage 2. In the case of small coalitions, negative matching may result in the subgame-perfect equilibrium that decreases global public...[Show more]

CollectionsANU Research Publications
Date published: 2014
Type: Journal article
URI: http://hdl.handle.net/1885/73752
Source: Economica
DOI: 10.1111/ecca.12074

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