We study the impact of farsightedness in a transboundary pollution game; i.e. the ability of a country to forecast the relationship between current emissions and future levels of pollution and thus on future damages. We show that when all countries are farsighted their payos are larger than when...

We study the stability of cartels in a dynamic oligopoly. We use the differential game model of an oligopoly with sticky prices (Fershtman and Kamien 1987). We show that when firms use closed-loop strategies and the rate of increase of the marginal cost is "small enough", the grand coalition...