IDEAS home Printed from https://ideas.repec.org/a/ecj/econjl/v107y1997i445p1671-83.html
   My bibliography  Save this article

Risk Aversion in Rent-Seeking and Rent-Augmenting Games

Author

Listed:
  • Konrad, Kai A
  • Schlesinger, Harris

Abstract

The effects of risk aversion are examined for two types of expenditures in rent-seeking contests: (1) rent-seeking expenditures, which improve the probability that the rent is obtained and (2) rent-augmenting expenditures, which increase the size of the rent to be awarded. Risk aversion is shown to reduce expenditures of type (2) unambiguously, while having an indeterminate effect on those of type (1). These two contrasting results are shown to derive from the very different effects rent-seeking and rent-augmenting expenditures have on the riskiness of a player's position. Copyright 1997 by Royal Economic Society.

Suggested Citation

  • Konrad, Kai A & Schlesinger, Harris, 1997. "Risk Aversion in Rent-Seeking and Rent-Augmenting Games," Economic Journal, Royal Economic Society, vol. 107(445), pages 1671-1683, November.
  • Handle: RePEc:ecj:econjl:v:107:y:1997:i:445:p:1671-83
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0013-0133%28199711%29107%3A445%3C1671%3ARAIRAR%3E2.0.CO%3B2-E&origin=bc
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ecj:econjl:v:107:y:1997:i:445:p:1671-83. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/resssea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.