In view of empirical and evolutionary findings on the relevance of relative payoffs we study--as a benchmark case--a model in which individuals maximize payoff differentials having the opportunity to invest in their relative standing by harming others. Interestingly, optimal investments are...

We report on an experiment designed to compare Stackelberg and Cournot duopoly markets with quantity competition. We implement both a random matching and a fixed-pairs version for each market. Stackelberg markets yield, regardless of the matching scheme, higher outputs than Cournot markets and,...