Question 3 The ideal outcome for the climate strategy game is one in which a dominant strategy equilibrium is achieved when both groups of countries choose to abate emissions. Explain how a change in the rules of the game could lead to a potential solution to the social dilemma of climate change. [3 marks] [max words: 200]

Figure 2: Payoffs for the climate strategy game with social preferences. Developed Abate No Change Best Good Abate Best Worst Developing Worst Bad No Change Good Bad Question 3 The ideal outcome for the climate strategy game is one in which a dominant strategy equilibrium is achieved when both groups of countries choose to abate emissions. Explain how a change in the rules of the game could lead to a potential solution to the social dilemma of climate change. [3 marks] [max words: 200]