We model the global warming process as a dynamic commons game in which the players are countries, their actions at each date produce emissions of greenhouse gases, and the state variable is the current stock of greenhouse gases. The theoretical analysis is complemented by a calibration exercise....

This chapter discusses moral hazard. The principalagent relationship embodies a special form of moral hazard, which can be called one-sided, but moral hazard can also be many-sided. The paradigmatic model of many-sided moral hazard is the partnership in which there are many agents but no...