For the next 4 questions, use the following scenario (Public…

For the next 4 questions, use the following scenario (Public Goods Game): two chemistry firms, Amazing and Bravo, co-started a chemistry screening project aiming at looking for safer chemistry and reducing pollution. Both have $10k initial endowment and they need to decide simultaneously how much to invest in the project. They could choose 1) Low, $1k, 2) Moderate, $5k, or 3) High, $10k. The normal form of the game is written as following:

The 1997 Kyoto Protocol asked all industrialized countries t…

The 1997 Kyoto Protocol asked all industrialized countries to cut their CO2 emissions during 2008-2012. However, the developing countries, including China, India, Brazil, and South Africa, were not required but encouraged to adopt policies to promote greener growth. Which of the following statements best explains the decision?