Burbidge, John B.; DePater, James A.; Meyers, Gordon M.; … - In: American Economic Review 87 (1997) 5, pp. 940-56
The authors develop a model in which states may choose to form coalitions to capture efficiency gains from policy coordination. Joining a coalition entails setting the policy variable to maximize the coalition's aggregate payoff at a Nash equilibrium against nonmembers and to commit to a...