1. F. H. Knight, The Ethics of Competition and Other Essays (New York: Harper and Brothers, 1935), p. 301.
2. Gordon Tullock, “Rent Seeking as a Negative-Sum Game”; Anne O. Krueger, “The Political Economy of the Rent-Seeking Society,” chapters 2 and 4 in this volume. 5 Notice that if Y = 0, the optimal strategy function is not defined. However, it is apparent that some non-zero level of competitive effort by X will, according to the payoff function (equation [1]), be better than similar inaction. Note that the payoffs to mutual inaction is R/2. Given inaction on the part of one’s competition (Y = 0), X > 0 would yield R-X, which is greater than R/2 if X is less than R/2.