Pre-Negotiation for an International Emission Reduction Game
Haruo Imai, Mayumi Horie
Prenegotiation,coalition formation,international emission reduction game
Climate Change and Sustainable Development
Based on a result due to Ray and Vohra showing the possibility of inefficiency due to a coalition formation in an international emission reduction game, we consider a possibility of negotiation preceding the negotiation stage, and by means of an example, indicate that the efficiency is restored. In the equilibrium obtained, we observe a potential in which different set of coalition arises in the two stages, which could help explain what is going on in the international negotiation.