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Contest for power in organizations

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  • Gregor, Martin

Abstract

This paper explains the provision of private rent to powerful members in an organization as an outcome of a contest for power that raises the total contributions to the organization. A necessary condition for a socially efficient contest scheme with reimbursements is characterized.

Suggested Citation

  • Gregor, Martin, 2012. "Contest for power in organizations," Economics Letters, Elsevier, vol. 114(3), pages 280-283.
    • Handle: RePEc:eee:ecolet:v:114:y:2012:i:3:p:280-283
    DOI: 10.1016/j.econlet.2011.10.027
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    References listed on IDEAS

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    1. Bos, Olivier, 2011. "How lotteries outperform auctions," Economics Letters, Elsevier, vol. 110(3), pages 262-264, March.
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    11. Marco Faravelli, 2011. "The Important Thing Is Not (Always) Winning but Taking Part: Funding Public Goods with Contests," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(1), pages 1-22, February.
    12. Andreas Lange & John A. List & Michael K. Price, 2007. "Using Lotteries To Finance Public Goods: Theory And Experimental Evidence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 901-927, August.
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    More about this item

    Keywords

    Contest; Reimbursement; Rent-seeking; Collective good;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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