subject to both liability and negligence rules. We examine optimal deterrence under imperfect competition in settings with ex … imperfect competition, we demonstrate that the joint use of liability rules and negligence rules involving both ex ante and ex …

The incorporation of increasing returns and imperfect competition into applied general-equilibrium (AGE) models …, beginning with Harris (1984), led to much larger welfare effects from changes such as trade liberalization. But the imperfect … competition side of these IO developments has often failed to incorporate meaningful strategic behavior, largely ruling out firm …