This article presents a classroom game in which students choose whether or not to comply with pollution regulations. By varying the level of monitoring and fines for noncompliance, the game shows students how the probability and severity of enforcement affects incentives for compliance. The game...

This paper presents a classroom game in which students trade pollution permits. By changing the distribution of permits across firms, the game shows students how the allocation of property rights determines the winners and losers in the permit trading system but does not affect the efficiency of...

This paper adds to the debate over whether self-policing can increase environmental protection by considering an issue that has been ignored in previous models—that self-policing may influence future enforcement. The model combines self-policing with targeted enforcement and allows for both...