Unilateral Actions the Case of International Environmental Problems



Assume that the denominator is positive (due to uniqueness and slope, see Var-
ian (1992) p 288-289).

The sign of the denominator is determined by

2NB1 2NB2

q1 aq22

The second term is negative (NB is concave in q), hence, we have that

q1       2NB1

sign = sign ɔ ɔ .

a        ∂q1 a

We are, however, more interested in

q2

Sign 2 .

a

2NB1 2NB1

d q 2 =

q1 a
0

q12

2 NB 2

q1q2

a

2NB1

2NB1

q 1

q1 q2

2 NB 2

2NB2

q1 q2

q22

Assume that the denominator is positive (due to uniqueness and slope, see Var-
ian (1992) p 288-289).

The sign of the denominator is determined by

41



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