We investigate the interplay between learning effects and externalities in the problem of competitive investments with … the investment by observing the performance of the first mover and (ii) externalities exist between the investments of two … firms. We find a region of a war of attrition between the two firms in which the interplay between externalities and …

each agent generates negative externalities on the other agents, by depleting the free access natural resource; but it also … produces positive externalities by increasing the productivity of labour via a learning-by-doing mechanism of accumulation of …-dominated by others where aggregate private consumption and labour productivity are lower. However, negative externalities can also …

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 …