We study the role of uncertainty in the evolution of conventions in coordination games when agents are myopic best responders. We introduce uncertainty of the choice environment by means of an ergodic Markov process ruling the switching across a collection of 2-player symmetric coordination...

The Nationally Determined Contributions (NDCs) under the Paris Agreement fall short of the abatement needed to reach the 2°C target. Emissions trading could be a "costless" means to reduce the ambition gap if countries used their gains from trade for additional abatement. However, this requires...