Fighting pollution when decisions are strategic

摘要

In this paper we analyse anti-pollution policies in a 2-by-2 game played between a ''polluter'' and the ''police'' in which the payoffs can be manipulated by an exogenous third player called the ''policy-maker''. We show that the efficiency of the policies may depend on whether the players of the 2-by-2 game choose Nash equilibrium strategies or prefer maximin. (au).