Figure 3
Graph showing beta on vertical axis and gamma on horizontal axis with regions labeled PB, BI, BIE, G, H, NN minus C, and BCA minus C. Curves labeled beta sub 1, beta sub 2, beta sub 3 and line beta equals 2 gamma separate shaded regions.

The effect of BCAs on the incentive of country 2 to cooperate and equilibrium outcomes in the escalating penalty game. *BCA-C and NN-C are the BCA-constraint and the non-negativity constraint, respectively.

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