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Competitive-Share Group Formation in Rent-Seeking Contests

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Author Info
Baik, Kyung Hwan
Shogren, Jason F

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Abstract

The authors examine the possibility of forming a competitive-share group in rent-seeking contests. The competitive-share group has the following characteristics: the group is treated as a single player competing with the nonmembers to win the rent, the members choose their outlays noncooperatively, and the members compete to take larger shares of the rent. The authors show that the competitive-share group is always formed voluntarily. One important consequence of such group formation is that rent dissipation is less relative to individual rent seeking--in other words, the social cost associated with rent seeking is less. Copyright 1995 by Kluwer Academic Publishers

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

Volume (Year): 83 (1995)
Issue (Month): 1-2 (April)
Pages: 113-26
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Handle: RePEc:kap:pubcho:v:83:y:1995:i:1-2:p:113-26

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  1. Santiago Sanchez-Pages, 2007. "Endogenous Coalition Formation in Contests," ESE Discussion Papers 158, Edinburgh School of Economics, University of Edinburgh. [Downloadable!]
    Other versions:
  2. Anna Gunnthorsdottir & Amnon Rapoport, 2003. "The effect of sharing rules on group competition," Experimental 0307003, EconWPA. [Downloadable!]
  3. Kjell Hausken, 2005. "Production and Conflict Models Versus Rent-Seeking Models," Public Choice, Springer, vol. 123(1), pages 59-93, April. [Downloadable!] (restricted)
  4. Vincent Anesi, 2009. "Moral hazard and free riding in collective action," Social Choice and Welfare, Springer, vol. 32(2), pages 197-219, February. [Downloadable!] (restricted)
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This page was last updated on 2009-11-25.


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