The Core of an Economy with Multilateral Environmental Externalities
Henry Tulkens () and
Parkash Chander ()
International Journal of Game Theory, 1997, vol. 26, issue 3, 379-401
When environmental externalities are international - i.e. transfrontier - they most often are multilateral and embody public good characteristics. Improving upon inefficient laissez-faire equilibria requires voluntary cooperation for which the game-theoretic core concept provides optimal outcomes that have interesting properties against free riding. To define the core, however, the characteristic function of the game associated with the economy (which specifies the payoff achievable by each possible coalition of players - here, the countries) must also reflect in each case the behavior of the players which are not members of the coalition. This has been for a long time a disputed issue in the theory of the core of economies with externalities. Among the several assumptions that can be made as to this behaviour, a plausible one is defined in this paper, for which it is shown that the core of the game is nonempty. The proof is constructive in the sense that it exhibits a strategy (specifying an explicit coordinated abatement policy and including financial transfers) that has the desired property of nondomination by any proper coalition of countries, given the assumed behavior of the other countries. This strategy is also shown to have an equilibrium interpretation in the economic model.
Note: Received September 1995 Revised version September 1996
References: Add references at CitEc
Citations: View citations in EconPapers (71) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Working Paper: The core of an economy with multilateral environmental externalities (1997)
Working Paper: The Core of an Economy with Multilateral Environmental Externalities (1995)
Working Paper: The Core of an Economy With Multilateral Environmental Externalities (1994)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:jogath:v:26:y:1997:i:3:p:379-401
Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/182/PS2
Access Statistics for this article
International Journal of Game Theory is currently edited by Shmuel Zamir, Vijay Krishna and Bernhard von Stengel
More articles in International Journal of Game Theory from Springer, Game Theory Society
Bibliographic data for series maintained by Sonal Shukla ().