Keohane and Olson, Chapter 5, Question 6: In the international treaty "game" described by Keohane & Olmstead Figure 5.5, both countries would be better off if each contributed to the clean-up of a shared pollution problem, but this is not what we expect to happen. Why is this better outcome unlikely to occur? Please provide a fresh answer, not copy and paste from other websites such as chegg or course hero. I'm trying to understand shirking mainly and how its beneficial for a country to shirk.
Keohane and Olson, Chapter 5, Question 6: In the international treaty "game" described by Keohane & Olmstead Figure 5.5, both countries would be better off if each contributed to the clean-up of a shared pollution problem, but this is not what we expect to happen. Why is this better outcome unlikely to occur? Please provide a fresh answer, not copy and paste from other websites such as chegg or course hero. I'm trying to understand shirking mainly and how its beneficial for a country to shirk.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Keohane and Olson, Chapter 5, Question 6: In the international treaty "game" described by Keohane & Olmstead Figure 5.5, both countries would be better off if each contributed to the clean-up of a shared pollution problem, but this is not what we expect to happen. Why is this better outcome unlikely to occur?
Please provide a fresh answer, not copy and paste from other websites such as chegg or course hero. I'm trying to understand shirking mainly and how its beneficial for a country to shirk.
Transcribed Image Text:Player B
(payoffs in lower RH corner of each cell)
Contribute
Shirk
+1
-1
Contribute
+1
+3
+3
Shirk
-1
Figure 5.5 Payoff matrix for the Prisoner's Dilemma.
Player A
(payoffs in upper LH corner of each cell)
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