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Delegation in a group-contest

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Author Info
Schoonbeek, Lambert (Groningen University)

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Abstract

It is known that the option of delegation in a rent-seeking contest between two individuals leads to a prisoner\'s dilemma. In equilibrium no player hires a delegate, while it is Pareto-efficient if both would hire one. This paper shows that this result does not generalize to a contest between the members of two groups. We further provide the conditions under which zero, one, or both groups hire a delegate in equilibrium.

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File URL: http://irs.ub.rug.nl/ppn/241144159
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Paper provided by University of Groningen, CCSO Centre for Economic Research in its series CCSO Working Papers with number 200201.

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Date of creation: 2002
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Handle: RePEc:dgr:rugccs:200201

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  1. Oliver Gürtler, 2006. "Contractual Incentive Provision and Commitment in Rent-Seeking Contests," Discussion Papers 100, 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!]
  2. Lambert Schoonbeek, 2007. "Delegation with multiple instruments in a rent-seeking contest," Public Choice, Springer, vol. 131(3), pages 453-464, June. [Downloadable!] (restricted)
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  3. Stefan Brandauer & Florian Englmaier, 2006. "A Model of Strategic Delegation in Contests between Groups," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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  4. Sami Dakhlia & Paul Pecorino, 2005. "Rent-seeking with scarce talent: a model of preemptive hiring," Microeconomics 0505002, EconWPA. [Downloadable!]
    Other versions:
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