Think of the problem of climate change as a game between two countries called Brazil and...
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Think of the problem of climate change as a "game" between two countries called Brazil and Germany, considered as if each were a single individual. Each country has two possible strategies for addressing global carbon emissions: o Mitigate: taking measures to reduce emissions, for example by taxing the use of fossil fuels or subsidising the development of renewable energy. o Adapt: a scenario in which people, governments and businesses are free to adjust to the current and future effects of climate change without taking adequate account of the effect of their actions on others. The figures below describe the outcomes and hypothetical payoffs of this game. All payoffs represent potential increases to the nation's gross domestic product (GDP), measured in billions of USD. Use this model to answer the following question: Brazil Mitigate Adapt Mitigate 9 6 Germany 9 2 2 4 Adapt 6 4 a. Do either of the players have a dominant strategy? If so, what is it? (2 marks) b. What is/are the Nash equilibrium/equilibria of this game? Is this game a Social Dilemma? Explain your answer. (4 marks). c. Could the payoffs in this figure represent the situation that both countries have social preferences? Why? (3 marks) d. What would you suggest in this game to solve the social dilemma of climate? Support your response with an example (Word limit 100) (4 marks) Think of the problem of climate change as a "game" between two countries called Brazil and Germany, considered as if each were a single individual. Each country has two possible strategies for addressing global carbon emissions: o Mitigate: taking measures to reduce emissions, for example by taxing the use of fossil fuels or subsidising the development of renewable energy. o Adapt: a scenario in which people, governments and businesses are free to adjust to the current and future effects of climate change without taking adequate account of the effect of their actions on others. The figures below describe the outcomes and hypothetical payoffs of this game. All payoffs represent potential increases to the nation's gross domestic product (GDP), measured in billions of USD. Use this model to answer the following question: Brazil Mitigate Adapt Mitigate 9 6 Germany 9 2 2 4 Adapt 6 4 a. Do either of the players have a dominant strategy? If so, what is it? (2 marks) b. What is/are the Nash equilibrium/equilibria of this game? Is this game a Social Dilemma? Explain your answer. (4 marks). c. Could the payoffs in this figure represent the situation that both countries have social preferences? Why? (3 marks) d. What would you suggest in this game to solve the social dilemma of climate? Support your response with an example (Word limit 100) (4 marks)
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a In this game a dominant strategy is a strategy that results in a higher payoff for a player regardless of the strategy chosen by the other player In ... View the full answer
Related Book For
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave
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