Normalized equilibrium in Tullock rent seeking game

International audienceGames with Common Coupled Constraints represent manyreal life situations. In these games, if one player fails tosatisfy its constraints common to other players, then theother players are also penalised. Therefore these games canbe viewed as being cooperative in goals related to meetingthe common constraints, and non cooperative in terms ofthe utilities. We study in this paper the Tullock rent seekinggame with additional common coupled constraints. We havesucceded in showing that the utilities satisfy the property ofdiagonal strict concavity (DSC), which can be viewed asan extention of concavity to a game setting. It not onlyguarantees the uniqueness of the Nash equilibrium but also of the normalized equilibrium

Balance of Power and the Propensity of Conflict

We study the role of an imbalance in fighting strengths when players bargain in the shadow of conflict. Our experimental results suggest: In a simple bargaining game with an exogenous mediation proposal, the likelihood of conflict is independent of the balance of power. If bargaining involves endogenous demand choices, however, the likelihood of conflict is higher if power is more imbalanced. Even though endogenous bargaining outcomes reflect the players' unequal fighting strengths, strategic uncertainty causes outcomes to be most efficient when power is balanced. In turn, the importance of exogenous mediation proposals depends on the balance of power

The asymptotic behavior of dynamic rent-seeking games

Dynamic rent-seeking games with nonlinear cost functions are analyzed. The local asymptotic stability of the solution is first examined. We show that in the absence of a dominant agent, all eigenvalues of the Jacobian are real. Conditions are given for the local asymptotic stability as well as for the local instability of the equilibrium. In the presence of a dominant agent, complex eigenvalues are possible. Simple stability conditions are presented for cases when all eigenvalues are real, and the possibility of limit cycles is analyzed in the case of complex eigenvalues