We augment the standard cartel formation game from non-cooperative coalition theory, often applied in the context of international environmental agreements on climate change, with the possibility that singletons support coalition formation without becoming coalition members themselves. Rather,...

Without regulation or agreement, public goods are underprovided and public bads are overprovided. Both problems are usually seen as flip sides of the same coin. In this paper we examine a situation where a public good is good for some agents but bad for others, and this preference is endogenous...