This paper re-considers the comparison of Bertrand and Cournot equilibria in a differentiatedduopoly with linear demand and cost functions. It focuses on the case of substitutegoods, and allows for cost asymmetries between firms. The main finding is that, when thedegree of cost asymmetry is...

We set up a two-stage game with sequential moves by one altruistic agent andn selfish agents. The rotten kid theorem states that the altruist can only reach her firstbest when the selfish agents move before the altruist. The Samaritan’s dilemma, on theother hand, states that the altruist can...

This paper considers the extent to which expenditure by contestants inimperfectly discriminating rent-seeking contests dissipates all or only partof the rent. In particular, we investigate strategic effects, technologicaleffects and asymmetry under an assumption of diminishing returns to...