We show in a differential game of a differentiated product doupoly model of price competition with costly production adjustment that when firms are symmetric the leadership attempt by each firm turns into Stackelberg price warfare yielding a (MArkov perfect) steady state outcome more competitive...

Some of the most interesting results in the modern theory of fiscal federalism indicate that, contrary to expectations, even if there are interstate externalities, socially optimal policy choices are a non cooperative equilibrium of a game played by sovereign states. These results are shown to...