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Investment in the Absence of Property Rights: The Role of Incumbency Advantages

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Author Info
Kai Konrad ()

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Abstract

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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Publisher Info
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: 2002
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Handle: RePEc:ces:ceswps:_698

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Keywords: investment endogenous property rights contests incumbency advantage proprietary states

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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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Felix Höffler & Sebastian Kranz, 2007. "Legal Unbundling can be a Golden Mean between Vertical Integration and Separation," Bonn Econ Discussion Papers bgse15_2007, University of Bonn, Germany. [Downloadable!]
  2. Holger Strulik, 2004. "Social Composition, Social Conflict, and Economic Development," DEGIT Conference Papers c009_018, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
    Other versions:
  3. Bennour, Khaled, 2008. "The Value of Rents and the Likelihood of Conflicts," MPRA Paper 8379, University Library of Munich, Germany. [Downloadable!]
  4. Kai A. Konrad & Stergios Skaperdas, 2005. "Succession Rules and Leadership Rents," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  5. Ling Shen, 2007. "When will a Dictator be Good?," Economic Theory, Springer, vol. 31(2), pages 343-366, May. [Downloadable!] (restricted)
    Other versions:
  6. Gradstein, Mark, 2004. "Inequality, Democracy and the Emergence of Institutions," CEPR Discussion Papers 4187, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  7. Oliver Gürtler & Matthias Kräkel, . "Double-Sided Moral Hazard, Efficiency Wages and Litigation," Bonn Econ Discussion Papers bgse14_2007, University of Bonn, Germany. [Downloadable!]
    Other versions:
  8. Feess,Eberhard & Muehlheusser,Gerd & Walzl,Markus, 2004. "Unfair Contests," Research Memoranda 050, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
  9. Kai A. Konrad & Wolfgang Leininger, 2005. "The Generalized Stackelberg Equilibrium of the All-Pay Auction with Complete Information," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  10. Matthias Kräkel, 2006. "On the "Adverse Selection" of Organizations," Discussion Papers 168, 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. [Downloadable!]
    Other versions:
  11. Amegashie, J. Atsu, 2006. "Incomplete Property Rights, Redistribution, And Welfare," MPRA Paper 3438, University Library of Munich, Germany. [Downloadable!]
  12. Mehlum, Halvor & Moene, Karl, 2005. "Fighting against the odds," Memorandum 03/2005, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  13. Michelle R. Garfinkel, 2003. "Global Threats and the Domestic Struggle for Power," Public Economics 0306001, EconWPA. [Downloadable!]
    Other versions:
  14. Eberhard Feess & Gerd Muehlheusser & Markus Walzl, 2002. "When Bidding More is Not Enough: All-Pay Auctions with Handicaps," Bonn Econ Discussion Papers bgse14_2002, University of Bonn, Germany. [Downloadable!]
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