investigate the incentives to expend effort for a prize that produces consumption externalities and consider alternative … regulatory policies. We find relatively more global consumption externalities will increase (decrease) rent seeking when … consumption externalities are negative (positive). We show how introducing Pigouvian taxation (possibly with revenue transfer) and …

This paper studies infinite-horizon bargaining between a seller and multiple buyers when externalities are present. We … externalities. Since each buyer receives a positive payoff when the seller makes an agreement with some other buyer, positive … externalities induce a war of attrition between buyers. …