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Committees and Rent-Seeking Effort under Probabilistic Voting

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 Amegashie, J Atsu

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Abstract

Congleton (1984) shows that a rent awarded by a committee results in smaller aggregate rent-seeking expenditures than a similar rent awarded by a single administrator. This note modifies Congleton's model by considering a model in which voting is probabilistic instead of deterministic. I show that the relative magnitudes of rent-seeking expenditures could go either way depending on the relative weighted sensitivities (to rent-seeking efforts) of the committee and the single administrator. I show how the distribution of voting powers of committee members affects rent-seeking efforts. I also examine the case where there is some probability that the rent may not be awarded, if the committee is unable to reach a majority decision. My results diverge from Congleton (1984) because of the absence of majoritarian cycles in my model. Copyright 2002 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 112 (2002)
Issue (Month): 3-4 (September)
Pages: 345-50
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Handle: RePEc:kap:pubcho:v:112:y:2002:i:3-4:p:345-50

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  1. Derek J. Clark & Kai A. Konrad, 2005. "Contests with multi-tasking," Discussion Papers 125, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich, revised May 2006. [Downloadable!]
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