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On the Strategic Advantage of Interdependent Preferences in Rent-Seeking Contests

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  • Tobias Guse
  • Burkhard Hehenkamp

Abstract

We study rent-seeking contests, where the set of players contains both players with independent preferences and players with interdependent preferences. It turns out that the latter experience a strategic advantage in general two-player contests and in n-player-contests with non-increasing returns to scale technologies. Finally, we illustrate our findings for the special cases of an additively separable preference function.

Suggested Citation

  • Tobias Guse & Burkhard Hehenkamp, 2004. "On the Strategic Advantage of Interdependent Preferences in Rent-Seeking Contests," Discussion Papers in Economics 03_02, University of Dortmund, Department of Economics.
    • Handle: RePEc:mik:wpaper:03_02
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    Cited by:

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    2. Rusche, Christian, 2011. "Does Delegation Help to Prevent Spiteful Behavior?," Ruhr Economic Papers 270, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Stracke, Rudi & Hörtnagl, Tanja & Kerschbamer, Rudolf, 2016. "Competing for Market Shares: Why the Order of Moves Matters Even When It Shouldn't," VfS Annual Conference 2016 (Augsburg): Demographic Change 145532, Verein für Socialpolitik / German Economic Association.
    4. Kim, Jeong-Yoo & Lee, Kyu-Min & Park, Sung-Hoon, 2022. "Evolution of revealing emotions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 597(C).
    5. Gu, Yiquan & Hehenkamp, Burkhard & Leininger, Wolfgang, 2017. "The Dark Side of the Force: Evolutionary Equilibrium in Contests with Stochastic Entry," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168168, Verein für Socialpolitik / German Economic Association.
    6. Sina Risse, 2011. "Two-stage group rent-seeking with negatively interdependent preferences," Public Choice, Springer, vol. 147(3), pages 259-276, June.
    7. Wolfgang Leininger, 2008. "Evolutionarily Stable Preferences in Contests," Ruhr Economic Papers 0049, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    8. Sung-Hoon Park & Jeong-Yoo Kim, 2022. "Evolutionary stability of preferences: altruism, selfishness, and envy," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(2), pages 349-363, February.
    9. Frederik Schmidt, 2009. "Evolutionary stability of altruism and envy in Tullock contests," Economics of Governance, Springer, vol. 10(3), pages 247-259, July.
    10. Christian Rusche, 2011. "Does Delegation Help to Prevent Spiteful Behavior?," Ruhr Economic Papers 0270, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. repec:zbw:rwirep:0049 is not listed on IDEAS
    12. Wolfgang Leininger, 2008. "Evolutionarily Stable Preferences in Contests," CESifo Working Paper Series 2343, CESifo.
    13. Joachim Heinzel, 2019. "Credence Goods Markets with Heterogeneous Experts," Working Papers CIE 118, Paderborn University, CIE Center for International Economics.
    14. Leininger, Wolfgang, 2008. "Evolutionarily Stable Preferences in Contests," Ruhr Economic Papers 49, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    15. Eyal Baharad & Shmuel Nitzan, 2008. "Contest Efforts in Light of Behavioural Considerations," Economic Journal, Royal Economic Society, vol. 118(533), pages 2047-2059, November.
    16. repec:zbw:rwirep:0270 is not listed on IDEAS

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