The Impact of Unilateral Commitment on Transboundary Pollution

The irreversible pollution game

“…OL players do not observe the state variables or they decide to commit to a given time function, therefore not involving any kind of feedback control from the players. Though MPE may suggest that by construction they leave more room for free-riding, comparison between MPE and OL strategies in terms of social welfare and other aggregate and individual indicators is often tricky, often delivering ambiguous outcomes, see for example Bertinelli et al (2014Bertinelli et al ( , 2018. 4 As outlined in the Introduction, Wagener and de Zeeuw (2021) is the unique paper, to the best of our knowledge, which derives OL strategies under irreversibility thresholds.…”