Pledge-and-review bargaining

Pledge-and-Review Bargaining: from Kyoto to Paris

“…The proof in the Appendix draws on the companion paper (Harstad, 2023). There, I prove more general results, and that the first inequality in (13) must bind if there are trembles in the offers.…”

“…While the NBS has often been used to characterise bargaining outcomes, such as the commitments under the Kyoto Protocol, the discussion provided in the introduction suggests that, for P&R, w < 1. The formal analysis in Subsection 4.1, in part drawing on my companion paper (Harstad, 2023), verifies that there are two reasons for why the weight on others' payoffs is smaller (say, w) under P&R than it was for the Kyoto Protocol (say, w). The subsequent analysis will investigate and compare the consequences of w ∈ (0, 1) versus w ∈ (w, 1].…”

“…Proof of Theorem 1. The original and more general proof is in Harstad (2023). Here, let i, j ∈ {1, 2}, i = j.…”