(KU Leuven)
will give a presentation on
Abstract
This paper explores the dynamics of climate negotiations among countries, focusing on how politicians' impatience and short-term outlook influence coalition formation. Politicians' impatience or limited time horizons often lead to smaller, less ambitious coalitions, despite the potential benefits of broader cooperation. By modelling coalition formation as a sequential bargaining game, the paper examines how internal discrepancies in behavioural characteristics of politicians relative to experts, representing mindset of future generations, can shape coalition outcomes. We introduce an algorithm to fully characterise equilibrium structures, demonstrating that, without internal discrepancies, our results align with the established outcomes in the literature. However, when accounting for behavioural differences, we find that politicians can achieve Pareto improvements through conditional coordination with other proposing countries, leading to more effective equal-sized blocks of coalitions.