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102 3.2.2.1 The Public Interest Theory 104 3.2.2.2 The Capture Theory … 105 3.2.2.3 The Economic Theory of Regulation 106 3.2.3 Environmental Regulation … , 113 3.2.3.1 The Theory of Externalities 114 3.2.3.2 Command-and-control Regulation …
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In this paper we study international river pollution problems. We introduce a model in which the agents (countries) located along a river derive benefit while causing pollution, but also incur environmental costs of experiencing pollution from all upstream agents. We find that total pollution in...
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of equilibria are needed, and the analysis makes crucial use of the basic results from the theory of supermodular games …
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