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Contest for power in organizations

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  • Gregor, Martin

Abstract

This paper explains the provision of private rent to powerful members in an organization as an outcome of a contest for power that raises the total contributions to the organization. A necessary condition for a socially efficient contest scheme with reimbursements is characterized.

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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 114 (2012)
Issue (Month): 3 ()
Pages: 280-283

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Handle: RePEc:eee:ecolet:v:114:y:2012:i:3:p:280-283

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Web page: http://www.elsevier.com/locate/ecolet

Related research

Keywords: Contest; Reimbursement; Rent-seeking; Collective good;

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References

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  1. Marco Faravelli, 2008. "The Important Thing Is not (Always) Winning but Taking Part: Funding Public Goods with Contests," CRIEFF Discussion Papers 0802, Centre for Research into Industry, Enterprise, Finance and the Firm.
  2. Alexander Matros & Daniel Armanios, 2007. "Tullock's Contest with Reimbursements," Working Papers 328, University of Pittsburgh, Department of Economics, revised Sep 2008.
  3. Subhasish M. Chowdhury & Roman M. Sheremeta, 2010. "A generalized Tullock contest," Working Papers 10-08, Chapman University, Economic Science Institute.
  4. Jacob K. Goeree & Emiel Maasland & Sander Onderstal & John L. Turner, 2005. "How (Not) to Raise Money," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 897-926, August.
  5. Andreas Lange & John A. List & Michael K. Price, 2007. "Using Lotteries To Finance Public Goods: Theory And Experimental Evidence," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 48(3), pages 901-927, 08.
  6. Baye, Michael R. & Kovenock, Dan & Vries, Casper G. de, 2009. "Contests with rank-order spillovers," Discussion Papers, Research Unit: Market Processes and Governance SP II 2009-09, Social Science Research Center Berlin (WZB).
  7. Olivier Bos, 2010. "Charity Auctions for the Happy Few," Working Paper Series in Economics 45, University of Cologne, Department of Economics.
  8. Jeffrey Carpenter & Jessica Holmes & PeterHans Matthews, 2008. "Charity auctions: a field experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 92-113, 01.
  9. Morgan, John, 2000. "Financing Public Goods by Means of Lotteries," Review of Economic Studies, Wiley Blackwell, vol. 67(4), pages 761-84, October.
  10. BOS, Olivier, . "How lotteries outperform auctions," CORE Discussion Papers RP -2321, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  11. Michael A. Spencer & Stephen K. Swallow & Jason F. Shogren & John A. List, 2008. "Rebate Rules in Threshold Public Good Provision," NBER Working Papers 14559, National Bureau of Economic Research, Inc.
  12. Luca Corazzini & Marco Faravelli & Luca Stanca, 2007. "A Prize to Give for: An Experiment on Public Good Funding Mechanisms," CRIEFF Discussion Papers 0714, Centre for Research into Industry, Enterprise, Finance and the Firm.
  13. Arthur J.H.C. Schram & Sander Onderstal, 2009. "Bidding To Give: An Experimental Comparison Of Auctions For Charity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 431-457, 05.
  14. Chung, Tai-Yeong, 1996. " Rent-Seeking Contest When the Prize Increases with Aggregate Efforts," Public Choice, Springer, vol. 87(1-2), pages 55-66, April.
  15. Alcalde, José & Dahm, Matthias, 2010. "Rent seeking and rent dissipation: A neutrality result," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 1-7, February.
  16. Elfenbein, Daniel W. & McManus, Brian, 2010. "Last-minute bidding in eBay charity auctions," Economics Letters, Elsevier, vol. 107(1), pages 42-45, April.
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