The Side Payments Game

Scott Barrett

in Environment and Statecraft

Published in print November 2005 | ISBN: 9780199286096
Published online October 2005 | e-ISBN: 9780191602832 | DOI:
 The Side Payments Game

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This chapter considers the role that compensating payments can play in promoting international cooperation. The theory developed here explains that such payments cannot increase cooperation when countries are alike, but that they can have a huge effect when countries are very different. Side payments can therefore only really help when the conditions allow them to play this role. The theory is again applied to the Montreal Protocol.

Keywords: asymmetric games; side payments; compensating payments; equilibrium selection; fairness; cost sharing

Chapter.  11094 words.  Illustrated.

Subjects: Economic Development and Growth

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