Improving Abatement Levels and Welfare by Coarse Correlation in an Environmental Game

Coarse correlated equilibria (CCE, Moulin and Vial, 1978) can be used to substantially improve upon the Nash equilibrium solution of the well-analysed abatement game (Barrett, 1994). We show this by computing successively the CCE with the largest total utility, the one with the highest possible abatement levels and finally, the one with maximal abatement level while maintaining at least the level of utility from the Nash outcome.