On the Strategic Advantage of Interdependent Preferences in Rent-Seeking Contests
AbstractWe study rent-seeking contests, where the set of players contains both players with independent preferences and players with interdependent preferences. It turns out that the latter experience a strategic advantage in general two-player contests and in n-player-contests with non-increasing returns to scale technologies. Finally, we illustrate our findings for the special cases of an additively separable preference function.
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Bibliographic InfoPaper provided by University of Dortmund, Department of Economics in its series Discussion Papers in Economics with number 03_02.
Length: 37 pages
Date of creation: Oct 2004
Date of revision:
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