Multiple Choice

Consider a strategic situation between two nations, both of which want to avoid a shared environmental catastrophe that will occur if neither restricts their industrial emissions. However, restricting emissions is very costly, and each nation strongly prefers that the other bears this cost. This has resulted in a standoff where both nations are waiting. Which of the following scenarios is most likely to resolve the standoff by inducing one of the nations to act first?

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Updated 2025-08-26

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