This book contains articles on the theory of conflict. Conflict appears in many forms, from a dictator terrorizing his country to organized crime demanding protection money. Among the questions addressed are the conditions which make conflict severe (for example, is class conflict worse than...

Restrictions on work hours are more important in countries with a large welfare state. We show that this empirical observation is consistent with the strategic effects of such restrictions in a welfare state in the context of optimal direct taxation in the tradition of Mirrlees (1971). Our...

Merged firms are typically rather complex organizations. Accordingly, merger has a more profound effect on the structure of a market than simply reducing the number of competitors. We show that this may render horizontal mergers profitable and welfare-improving even if costs are linear. The...