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Rents, dissipation and lost treasures: Rethinking Tullock's paradox

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  • Giuseppe Dari-Mattiacci
  • Francesco Parisi

Abstract

In this paper we revisit Tullock's paradox (Tullock, 1980) and consider a rent-seeking game in which parties face increasing returns to effort. We allow parties to randomize their strategies and give them an exit option. Given the mixed participation strategies of the parties, valuable rents may occasionally remain unexploited. We consider such a lost-treasure effect as an additional cost of rent seeking and examine how the expected value of such a lost rent varies with changes in the parameters of the problem. Copyright Springer Science + Business Media, Inc. 2005

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  • Giuseppe Dari-Mattiacci & Francesco Parisi, 2005. "Rents, dissipation and lost treasures: Rethinking Tullock's paradox," Public Choice, Springer, vol. 124(3), pages 411-422, September.
    • Handle: RePEc:kap:pubcho:v:124:y:2005:i:3:p:411-422
    DOI: 10.1007/s11127-005-2056-0
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    Cited by:

    1. Schaefer Hans-Bernd, 2020. "Laudatio: Francesco Parisi," Review of Law & Economics, De Gruyter, vol. 16(1), pages 1-9, March.
    2. Martin Gregor, 2016. "Tullock's Puzzle in Pay-and-Play Lobbying," Economics and Politics, Wiley Blackwell, vol. 28(3), pages 368-389, November.
    3. Bonardi Jean-Philippe & Urbiztondo Santiago, 2013. "Asset freezing, corporate political resources and the Tullock paradox," Business and Politics, De Gruyter, vol. 15(3), pages 275-293, October.
    4. Christian Ewerhart, 2015. "Mixed equilibria in Tullock contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(1), pages 59-71, September.
    5. Johannes Münster, 2007. "Rents, dissipation and lost treasures: Comment," Public Choice, Springer, vol. 130(3), pages 329-335, March.
    6. Parisi Francesco, 2020. "Law and Economics as We Grow Younger," Review of Law & Economics, De Gruyter, vol. 16(1), pages 1-20, March.
    7. Barbara Luppi & Francesco Parisi, 2012. "Litigation and legal evolution: does procedure matter?," Public Choice, Springer, vol. 152(1), pages 181-201, July.
    8. Guerra Alice & Luppi Barbara & Parisi Francesco, 2019. "Standards of Proof and Civil Litigation: A Game-Theoretic Analysis," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 19(1), pages 1-19, January.
    9. Giuseppe Dari-Mattiacci & Sander Onderstal & Francesco Parisi, 2009. "Seeking rents in the shadow of Coase," Public Choice, Springer, vol. 139(1), pages 171-196, April.
    10. Epstein Gil S. & Lindner Pomerantz Renana, 2011. "Media and Litigation," Review of Law & Economics, De Gruyter, vol. 7(2), pages 539-571, December.
    11. repec:elg:eechap:15325_17 is not listed on IDEAS
    12. Maria Alessandra Antonelli, 2010. "Income Distribution And Rent Seeking Costs: A Note," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 10(3), pages 5-12.
    13. Florian Baumann & Tim Friehe, 2013. "A note on the timing of investments in litigation contests," European Journal of Law and Economics, Springer, vol. 35(3), pages 313-326, June.
    14. Münster, Johannes, 2006. "Rents, dissipation and lost treasures: comment," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 119, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    15. Karl Wärneryd, 2012. "Nine points of the law: evidentiary rules and the costs of litigation," Public Choice, Springer, vol. 153(3), pages 279-285, December.
    16. Francesco Parisi & Barbara Luppi & Alice Guerra, 2017. "Gordon Tullock and the Virginia School of Law and Economics," Constitutional Political Economy, Springer, vol. 28(1), pages 48-61, March.

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