Unilateral Actions the Case of International Environmental Problems

holds with strict inequality. Hence, no qiL ≠ qⁱ can be weakly dominated.
Therefore, given an qiL = qⁱ + ε, posterior beliefs will be updated to ρ(q[ ) = 1,
and consequently, given this new set of beliefs, only qiL = qⁱ is an undominated
separating equilibrium.

Proof of result 5: First we note that if γ=0, then UA is not relevant (result 1 and
2) in the sense that a unilateral increase in reductions by one country will not

increase reductions abroad. On the other hand, given proposition 2, given γ=1,

the higher the correlation, the more the other countries will increase their reduc-

∂q^UA

tions (i.e. the larger will be q_j (qUA) - q_j(ρ)). Next, due to the SCP, —— < 0.

∂γ

Hence, increased γ implies less UA is needed to get a higher response, and

∂NB_i ( qU, q_j∙ ( qUU ))
∂γ

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