We study the evolutionary selection of conjectures in duopoly games when players have other regarding preferences, i.e. preferences over payoff distributions. In both the Cournot and Bertrand duopoly games, the consistent conjectures are independent of other regarding preferences. Both duopoly games have evolutionarily stable conjectures that depend on other regarding preferences but that do no...

Duopolies are one of the simplest economic situations where interactions between firms determine market behavior. The standard model a price-setting duopoly is Bertrand model, which has unique solution that both set their prices equal to costs—a paradoxical result obtain zero profit, generally not observed in real duopolies. Here we propose new game theory for duopoly, show resolves behavior an...

This paper analyses the impact of changes in product market competition on the marginal cost of public funds (MCPF) and public goods supply when distortionary commodity taxes are used to raise revenue. First, less competition (measured by a switch from Bertrand to Cournot conduct, or a decrease in the elasticity of demand) does not necessarily raise the MPCF. Second, even if it does, optimal pu...