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The evolution of sharing rules in rent seeking contests: Incentives crowd out cooperation

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  • Heinrich Ursprung

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Abstract

Modern societies are characterized by competing organizations that rely predominantly on incentive schemes to align the behavior of their members with the organizations’ objectives. This study contributes to explaining why in so many cases incentive schemes have gradually crowded out cooperation as an organization device. Our explanation does not draw on free-riding, the obvious Achilles’ heel of cooperation, but relies completely on fundamental group contest mechanisms. By investigating a canonical rent seeking model and adopting an evolutionary perspective, the analysis identifies shortcomings in previous results, sets the record straight, and explains why the process of incentivizing organizations is protracted. Copyright Springer Science+Business Media, LLC 2012

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 153 (2012)
Issue (Month): 1 (October)
Pages: 149-161

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Handle: RePEc:kap:pubcho:v:153:y:2012:i:1:p:149-161

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: Group contests; Rent-seeking; Sharing rules; Cooperation; Incentives; Evolution; D72; D74; M52;

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Cited by:
  1. Kahana, Nava & Klunover, Doron, 2014. "Rent Seeking and the Excess Burden of Taxation," IZA Discussion Papers 8160, Institute for the Study of Labor (IZA).

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