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Investment in the Absence of Property Rights: The Role of Incumbency Advantages Author info | Abstract | Publisher info | Download info | Related research | Statistics Kai Konrad ()
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In many situations the individuals who can generate some output must enter a contest for appropriating this output. This paper analyses the investment incentives of such agents and the role of incumbency advantages in the contest. Depending on the advantages, an increase in the productivity of the investment can decrease or increase the amount of investment. The results are applied to autocrats' investment behavior and job specific investment in organizations.
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Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number
CESifo Working Paper No. 698.
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Date of creation: 2002Date of revision:
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Keywords: investment endogenous property rights contests incumbency advantage proprietary states Other versions of this item:
Find related papers by JEL classification: D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
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