We examine an environmental policy which may be revisited by a new administration. We allow for pollution to be persistent over time and for uncertainty in next period's environmental policy. When pollution is non-persistent, we show that regulatory uncertainty is inconsequential for output,...

Chapter 1. Introduction to games and their representation.-Chapter 2. Equilibrium dominance.-Chapter 3. Nash equilibrium.-Chapter 4. Nash equilibria in games with continuous action spaces.-Chapter 5. Mixed strategy Nash equilibrium -- Chapter 6. Subgame perfect equilibrium -- Chapter 7. Repeated...

This paper investigates an entry-deterrence model where a potential entrant, uninformed about the incumbent firm's production costs, observes two signals: the incumbent's output decision and the emission fee set by an informed regulator. We study contexts in which emission fees are flexible and...