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Rents, dissipation and lost treasures: Comment

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  • Johannes Münster

Abstract

In an interesting recent paper, Dari-Mattiacci and Parisi (2005) extended Tullock's (1980) rent-seeking game with an entry decision. The mixed strategies identified by Dari-Mattiacci and Parisi for the case of increasing returns in the contest success function (r2) do not constitute an equilibrium of the game they study. However, these strategies are an equilibrium if the strategy space of the game is restricted by a minimum expenditure requirement, and this minimum expenditure requirement is an element of a specific interval. Copyright Springer Science + Business Media B.V. 2007

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  • Johannes Münster, 2007. "Rents, dissipation and lost treasures: Comment," Public Choice, Springer, vol. 130(3), pages 329-335, March.
    • Handle: RePEc:kap:pubcho:v:130:y:2007:i:3:p:329-335
    DOI: 10.1007/s11127-006-9088-y
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    References listed on IDEAS

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    1. Yang, Chun-Lei, 1994. "A simple extension of the Dasgupta-Maskin existence theorem for discontinuous games with an application to the theory of rent-seeking," Economics Letters, Elsevier, vol. 45(2), pages 181-183, June.
    2. 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.
    3. Schoonbeek, Lambert & Kooreman, Peter, 1997. "Tullock's Rent-Seeking Contest with a Minimum Expenditure Requirement," Public Choice, Springer, vol. 93(3-4), pages 477-486, December.
    4. Arye Hillman & Dov Samet, 1987. "Dissipation of contestable rents by small numbers of contenders," Public Choice, Springer, vol. 54(1), pages 63-82, January.
    5. Baye, M.R. & Kovenock, D. & De Vries, C.G., 1993. "The Solution to the Tullock Rent-Seeking Game when R > 2: Mixed Strategy Equilibria and Mean Dissipation Rates," Papers 10-93-9, Pennsylvania State - Department of Economics.
    6. William Corcoran, 1984. "Long-run equilibrium and total expenditures in rent-seeking," Public Choice, Springer, vol. 43(1), pages 89-94, January.
    7. Toke Skovsgaard Aidt, 2002. "Strategic Political Participation and Redistribution," Economics and Politics, Wiley Blackwell, vol. 14(1), pages 19-40.
    8. Mark Gradstein, 1995. "Intensity Of Competition, Entry And Entry Deterrence In Rent Seeking Contests," Economics and Politics, Wiley Blackwell, vol. 7(1), pages 79-91, March.
    9. William Corcoran & Gordon Karels, 1985. "Efficient rents 1 rent-seeking behavior in the long-run," Public Choice, Springer, vol. 46(3), pages 227-246, January.
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    Cited by:

    1. 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.

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    Keywords

    Rent-seeking; Contest;

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