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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 Konrad, Kai A
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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 behaviour and job specific investment in organizations.
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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number
3050.
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Date of creation: Nov 2001Date of revision:
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Keywords: contests ; endogenous property rights ; incumbency advantage ; investment ; proprietry 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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