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Evaluating a Policy for International Cooperation
Two countries, A and B, share a river. Each can choose to implement costly 'Conservation' policies or continue with inexpensive 'Pollution' practices. The table below shows the economic outcome for each country (in billions of dollars) based on their choices. The first number is for Country A, the second for Country B.
| Country B: Conservation | Country B: Pollution | |
|---|---|---|
| Country A: Conservation | (10, 10) | (0, 15) |
| Country A: Pollution | (15, 0) | (3, 3) |
Currently, both countries are engaged in 'Pollution' practices, resulting in a (3, 3) outcome. An international organization proposes that both countries sign a non-binding pledge to switch to 'Conservation'. Evaluate the likelihood that this pledge alone will be successful in moving the countries to the mutually beneficial (10, 10) outcome. Justify your reasoning by analyzing the strategic incentives for each country.
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