This paper shows that technology licensing may be socially undesirable. Possibility of licensing increases the incentive for entry and thus, increases competition. If technology of the incumbent and entrant is sufficiently close, licensing-induced entry reduces social welfare. Otherwise,...

We show that the presence of loss aversion on the part of participantsin a Tullock imperfectly discriminating contest will significantlyreduce the proportion of the rent dissipated in the form of resourcesused up in the competition for that rent...

Noncooperative games in which each player’s payo¤ function depends on anadditively separable function of every player’s choice variable may be transformedinto an aggregative game, which may be analysed using the conceptof ‘share functions’. The resulting approach avoids the...