This paper presents a simple counterexample to the belief that policy cooperation among benevolent governments is desirable. It also explains circumstances under which such counterexamples are possible and relates them to the literature on time inconsistency.
Published in _The Review of Economic Studies_ (vol. 56, iss. 2, April 1989, pp. 289-296), https://doi.org/10.2307/2297462.
Versions of this report were published under the titles "International Policy Cooperation May Be Undesirable" and "Policy Cooperation Among Benevolent Governments May Be Undesirable."