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The equivalence of rent-seeking outcomes for competitive-share and strategic groups

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  • Baik, Kyung Hwan
  • Dijkstra, Bouwe R.
  • Lee, Sanghack
  • Lee, Shi Young

Abstract

In competitive-share groups, groups of players compete for a rent and members of the winning group share the prize according to a weighted average of relative outlay and egalitarian shares. In strategic groups, group members compete individually for a rent and the winner keeps a part of the rent, and divides the rest among group members. In this note, we show that these two portrayals of rent seeking with groups are equivalent.
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Suggested Citation

  • Baik, Kyung Hwan & Dijkstra, Bouwe R. & Lee, Sanghack & Lee, Shi Young, 2006. "The equivalence of rent-seeking outcomes for competitive-share and strategic groups," European Journal of Political Economy, Elsevier, vol. 22(2), pages 337-342, June.
    • Handle: RePEc:eee:poleco:v:22:y:2006:i:2:p:337-342
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    1. Baik, Kyung Hwan & Shogren, Jason F, 1995. "Competitive-Share Group Formation in Rent-Seeking Contests," Public Choice, Springer, vol. 83(1-2), pages 113-126, April.
    2. Nitzan, Shmuel, 1991. "Rent-Seeking with Non-identical Sharing Rules," Public Choice, Springer, vol. 71(1-2), pages 43-50, August.
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    5. Kyung Hwan Baik, 1994. "Winner‐Help‐Loser Group Formation In Rent‐Seeking Contests," Economics and Politics, Wiley Blackwell, vol. 6(2), pages 147-162, July.
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    13. Hwan Baik, Kyung & Lee, Sanghack, 1997. "Collective rent seeking with endogenous group sizes," European Journal of Political Economy, Elsevier, vol. 13(1), pages 121-130, February.
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    Cited by:

    1. Aisbett, Emma & McAusland, Carol, 2013. "Firm characteristics and influence on government rule-making: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 29(C), pages 214-235.
    2. Kräkel, Matthias, 2012. "Competitive careers as a way to mediocracy," European Journal of Political Economy, Elsevier, vol. 28(1), pages 76-87.
    3. Oto-Peralías, Daniel & Romero-Ávila, Diego & Usabiaga, Carlos, 2013. "Does fiscal decentralization mitigate the adverse effects of corruption on public deficits?," European Journal of Political Economy, Elsevier, vol. 32(C), pages 205-231.
    4. Baik, Kyung Hwan & Lee, Sanghack, 2007. "Collective rent seeking when sharing rules are private information," European Journal of Political Economy, Elsevier, vol. 23(3), pages 768-776, September.
    5. Angelopoulos, Konstantinos & Philippopoulos, Apostolis & Vassilatos, Vanghelis, 2009. "The social cost of rent seeking in Europe," European Journal of Political Economy, Elsevier, vol. 25(3), pages 280-299, September.

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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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