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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/238231593
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Publisher Info
Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 02F03.

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Date of creation: 2002
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Handle: RePEc:dgr:rugsom:02f03

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