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Delegation with multiple instruments in a rent-seeking contest

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Author Info
Schoonbeek, Lambert (Groningen University)

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Abstract

Abstract : We consider delegation in a rent-seeking contest with two players, where delegates have more instruments at their disposal than the main players. We endogenize both the decision to hire a delegate and the contingent fee offered to the delegates. We characterize the situations when either no, one or two players hire a delegate in equilibrium. We show that the decision to hire a delegate depends in a non-monotone way on the size of the contested prize.

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File URL: http://irs.ub.rug.nl/ppn/299114678
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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 06C11.

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Date of creation: 2006
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Handle: RePEc:dgr:rugsom:06c11

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  1. Schoonbeek, Lambert, 2004. "Delegation in a group-contest," European Journal of Political Economy, Elsevier, vol. 20(1), pages 263-272, March. [Downloadable!] (restricted)
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  2. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
  3. Gil S. Epstein & Carsten Hefeker, 2003. "Lobbying contests with alternative instruments," Economics of Governance, Springer, vol. 4(1), pages 81-89, 04. [Downloadable!] (restricted)
  4. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May. [Downloadable!] (restricted)
  5. Baik, Kyung Hwan & Kim, In-Gyu, 1997. "Delegation in contests," European Journal of Political Economy, Elsevier, vol. 13(2), pages 281-298, May. [Downloadable!] (restricted)
  6. Liston-Heyes, Catherine, 2001. "Setting the Stakes in Environmental Contests," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 1-12, January. [Downloadable!] (restricted)
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