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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.

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  • Gürtler, Oliver, 2005. "Rent seeking in sequential group contests," Bonn Econ Discussion Papers 2/2005, University of Bonn, Bonn Graduate School of Economics (BGSE).
    • Handle: RePEc:zbw:bonedp:22005
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