PEW: Bard Harstad

Mon, Sep 17, 2018, 4:30 pm

Inspired by the Paris Agreement on climate change, this paper analyzes a novel bargaining game in which each party quantifies its own contribution (to a public good, for example), before the set of pledges must be accepted. I first show that, if the tolerance for delay is uncertain, each equilibrium pledge coincides with an asymmetric Nash bargaining solution. The weights placed on others' payoffs reflect the underlying uncertainty, but they vary from pledge to pledge, so the set of equilibrium pledges is inefficient. This bargaining outcome is embedded in a dynamic contribution game, with endogenous technology, participation, enforcement, and contract terms, to investigate when pledge-and-review bargaining is desirable. The model's predictions can rationalize the key differences between the climate agreements signed in Kyoto (1997) and Paris (2015) and the development from the former to the latter.

Location: 
Speaker(s): 

Upcoming

PEC: Maria Micaela Sviatschi

Thu, Nov 29, 2018, 12:15 pm
Location: Fisher Hall 200

PEW: Laurent Bouton

Mon, Dec 3, 2018, 4:30 pm
Location: 127 Corwin Hall

PEC: Brendan Cooley

Thu, Dec 6, 2018, 12:15 pm
Location: Fisher Hall 200

PEC: Federico Huneeus

Thu, Dec 13, 2018, 12:15 pm
Location: Fisher Hall 200

PEW: Alessandra Casella

Mon, Feb 11, 2019, 4:30 pm
Location: 127 Corwin Hall

PEW: Edward Glaeser

Mon, Feb 25, 2019, 4:30 pm
Location: 127 Corwin Hall

PEW: Monica Martinez-Bravo

Mon, Mar 4, 2019, 4:30 pm
Location: 127 Corwin Hall

PEW: Juan Ortner

Mon, Mar 11, 2019, 4:30 pm
Location: 127 Corwin Hall

Princeton/Warwick/Utah Political Economy Conference 2019

Sat, Mar 23, 2019 (All day) to Sun, Mar 24, 2019 (All day)

PEW: Gilat Levy

Mon, Mar 25, 2019, 4:30 pm
Location: 127 Corwin Hall