We investigate intertemporal strategic interactions if monopolies,cartels or oligopolies benefit from firm internal as well as external learning by doing. Our analysis is carried out for a linear learningcost curve because, it allows the derivation of the linear Markov perfectequilibrium (LMPE)....

We consider how one party can induce another party to join an international emission compact given private information. Due to multilateral externalities the principal uses her own emissions besides subsidies to incentivize the agent. This leads to a number of non-standard features: Optimal...

China is a rising global power with a growing role and impact on the world's energy markets as well as on the Earth's climate system. China pursues its development in an essentially non-confrontational manner, a vision encapsulated by the notion of peaceful rise which is viewed positively in the...

Countries often have private information about their willingness to pay for protecting the climate system and their cost of emission reductions. We use a principal-agent model to re-examine the economic case for unilateral action by individual countries, in our case of the principal. We find...

This paper addresses the spatial evolution of countries accounting for economics, geography and (military) force. Economic activity is spatially distributed following the AK model with the output being split into consumption, investment, transport costs and military (for defense and expansion)....

This paper investigates whether an incumbent has an incentive to introduce corporate social responsibility (CSR) activities only as a response to entry by a competitor who cannot provide CSR (credibly) due to its lack of recognition, at least at the outset. More precisely, this paper shows that...

We consider contracting of a principal with an agent if multilateral externalities are present. The motivating example is that of an international climate agreement given private information about the willingness-to-pay (WTP) for emissions abatement. Due to multilateral externalities the...