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 …

consumption externalities, we show that an equilibrium price equals the marginal cost if and only if the buyer network is complete … or cyclic. When the externalities are approximately linear in the size of consumption, we identify the classes of …