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...

Previous research has suggested that pegged exchange rates are associated withlower inflation than floating rates. In which direction does the causality run?Using data from a large sample of developing countries from 1984 to 2000, weconfirm that “hard” pegs (currency boards or a shared...

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...