Navigating Cooperation and Sludge in Economics

This chapter delves into a social experiment on cooperation in public goods games and highlights the effects of free riding and subsequent punishment among participants. It further explores innovative strategies for international climate cooperation, including climate clubs and carbon taxes, while addressing the concept of 'sludge' and its detrimental impact on decision-making in financial contexts. The discussion emphasizes the need for effective policy design to facilitate better outcomes for individuals and societies.