Published in
Department of Economics, University of Oslo
Abstract
In the work "King of the hill" we analyze a newer ending competition between two parties. They may be political parties or business rivals, they may be war lords or religious groups. We discus how the stakes involved are affected when victory in one period is a benefit in the next. One striking result is that configuration with little turnover may produce very intense competition. This may explain the intensity of many conflicts in Africa. It may also explain how competition may bring progress even when the market is controlled by stable monopolies.