Caparrós A. & Péreau J.C. (2017) Multilateral versus sequential negotiations over climate change. Oxford Economic Papers 69(2): 365–387
Abstract. We discuss a model of gradual coalition formation with positive externalities in which a leading country endogenously decides whether to negotiate multilaterally or sequentially over climate change. We show that the leader may choose a sequential path, and that the choice is determined by the convexity of the TU-game and the free-rider payoffs of the followers. Except in a few clearly defined cases, the outcome of the negotiation process is always the grand coalition, although the process may need some time.