We model two groups engaged simultaneously in external and internal contests for some appropriable resource. Within each group, there are three strata, defined by unequal endowment of another, non-appropriable, resource. We find that different kinds of within-group endowment inequality may...

Wealthy individuals often voluntarily provide public goods that the poor also consume. Such philanthropy is perceived as legitimizing one's wealth. Governments routinely exempt the rich from taxation on grounds of their charitable expenditure. We examine the normative logic of this exemption. We...