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A partially exclusive rent-seeking contest

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  • Leppälä, Samuli

Abstract

This study presents a novel contest model in which interest groups compete for partially exclusive rents, and the number of winners is endogenous. Partial exclusivity can explain the low empirical estimates of rent dissipation that create the Tullock paradox. However, partial exclusivity also increases aggregate effort and social waste. The effort-maximising contest design follows a simple rule of limiting the expected number of winners to half the number of contestants.

Suggested Citation

  • Leppälä, Samuli, 2021. "A partially exclusive rent-seeking contest," Journal of Economic Behavior & Organization, Elsevier, vol. 187(C), pages 60-75.
    • Handle: RePEc:eee:jeborg:v:187:y:2021:i:c:p:60-75
    DOI: 10.1016/j.jebo.2021.04.018
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    More about this item

    Keywords

    Rent seeking; Interest groups; Multiple-winner contests; Rent dissipation; Contest design;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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