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Environmental Agreement and Coalitional Games: Alternative Theoretical Methods
In this paper we investigate how the cooperation for an efficient international environmental
agreement can be encouraged. Until now all the types of the Environmental Treaties have been
based on multilateral agreements easily formalized using classic contract theory models that
emphasize the role of the compatibility with simple incentives for each countries. Assuming
the superadditivity in the coalition we know that once the coalition has formed the cooperation
within that coalition is unrestricted. Introducing the externality schemes and convexity we show
how the grand coalition is efficient.
