Payoff-Improving Competition: Games with Negative Externalities

B-Tier
Journal: Review of Industrial Organization
Year: 2021
Volume: 58
Issue: 3
Pages: 455-474

Authors (2)

Petros G. Sekeris (Groupe ESC Toulouse) Kevin Siqueira (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Abstract We demonstrate that more intense competition in games with production and negative externalities may be payoff-improving, and therefore welcomed by incumbents. In games that feature equilibria with strategic complements, increased competition may give rise to a new equilibrium where aggregate effort is lower, and the resulting reduced levels of externalities ultimately leaves all players better off. This setting applies to models of Cournot oligopoly, of common pool resources, and contests with endogenous prizes.

Technical Details

RePEc Handle
repec:kap:revind:v:58:y:2021:i:3:d:10.1007_s11151-020-09757-z
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-29