Common Contracts
1 similar null contracts
Overlapping International Green R&D Agreements∗June 14th, 2015
In words, for a strategy vector to be self-enforcing it needs to “pass” two tests: (i) the Nash equilibrium for any partition of non-overlapping coalitions must be coalition proof, just like in BPW; and (ii) for any partition containing overlapping coalitions, the Nash equilibrium for a partition consisting of two relevant sets – namely, a coalition produced by the union of overlapping coalitions and the complement of such a coalition – must be coalition proof. When coalitions overlap, the players who belong to a particular set of overlapping coalitions make strategic choices taking the strategic choices of all players who do not belong to this set of overlapping coalitions (i.e., players who belong to the complement of the union of the overlapping coalitions) as given, and vice-versa. The equilibrium strategies are determined according to two relevant coalitions, the superset formed by the union of the overlapping coalitions and its complement. Given such sets, the self-enforceability
