True/False

Consider a strategic interaction between two countries regarding climate policy. Both countries wish to avoid the catastrophic outcome that would result if neither restricts emissions. However, each country's most preferred outcome is to continue with its own high-emissions 'business as usual' policy while the other country restricts its emissions. In this situation, the outcome where both countries choose to restrict emissions is considered stable because neither country would have an incentive to unilaterally change its decision.

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Updated 2025-09-21

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