A country with a surplus river basin cooperates with a country with a deficit river basin in a joint investment project to build a water canal. The benefits from the existence of the canal are realized when cooperation halts and countries will have the opportunity to engage in a non-cooperative water market game. We define an imputation distribution procedure to share the “burden” from cooperat...

We construct a strategic trade model of an international duopoly, whereby production by exporting firms generates a local pollutant. Governments use environmental policies, i.e., an emissions standard or a tax, to control pollution and for rent shifting purposes. Contrary to their firm, however, governments are unable to perfectly foresee the actual level of demand, the cost of abatement and th...