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Intensity Of Competition, Entry And Entry Deterrence In Rent Seeking Contests

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  • Mark Gradstein

Abstract

In rent seeking contests agents compete over a given amount of resource a prize. To increase the likelihood of winning the prize, the agents expend efforts. This paper addresses the issue of entry to and entry deterrence from rent seeking contest. The main purpose of the analysis is to provide an explanation for the empirical fact that the number of participants in contests is usually small. I also obtain results on the relationship between the intensity of competition in a contest and the amount of the contenders’expenditures.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:ecopol:v:7:y:1995:i:1:p:79-91
    DOI: 10.1111/j.1468-0343.1995.tb00105.x
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