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Rent seeking in sequential group contests

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  • Gürtler, Oliver

Abstract

In this paper, a group contest is analyzed, where the groups are allowed to determine their sharing rules either sequentially or simultaneously. It is found that in case the more numerous group determines its sharing rule prior to the smaller group, rent dissipation in the group contest is higher than in an individual contest. However, if the order of moves is endogenized, the smaller group will always act prior to the bigger group. Competition between the groups is in this way weakened and the groups are able to save on expenditures.

Suggested Citation

  • Gürtler, Oliver, 2005. "Rent seeking in sequential group contests," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 47, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    • Handle: RePEc:trf:wpaper:47
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    References listed on IDEAS

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    More about this item

    Keywords

    Group contest; rent seeking; sequential choices; sharing rule;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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    This paper has been announced in the following NEP Reports:

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