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We study adaptation to climate change in a federalist setting. To protect themselves against an increase in flood risk, regional governments choose among adaptation measures that vary with respect to their costs, the level of protection they offer, and the presence and nature of spillovers to...
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norms on cooperation. We find that under the signaling mechanism, less cooperative players disguise themselves in the rule …-following game, but this does not decrease cooperation overall. More importantly, the signaling mechanism has a heterogeneous effect … decreases cooperation in rule-breaking groups. Finally, the signaling mechanism tends to offset the decline of contributions …
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In games with costly signaling, some equilibria are vulnerable to deviations which could be "unambiguously" interpreted … in two classes of games. First, in mono-tonic signaling games, only the Riley outcome is immune to this sort of deviation … class of games. Second, we examine a version of Crawford and Sobel's (1982) model with costly signaling, where standard …
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