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Contest for power in organizations

  • Gregor, Martin

This paper explains the provision of private rent to powerful members in an organization as an outcome of a contest for power that raises the total contributions to the organization. A necessary condition for a socially efficient contest scheme with reimbursements is characterized.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 114 (2012)
Issue (Month): 3 ()
Pages: 280-283

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Handle: RePEc:eee:ecolet:v:114:y:2012:i:3:p:280-283
DOI: 10.1016/j.econlet.2011.10.027
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  1. Sheremeta, Roman & Chowdhury, Subhasish, 2010. "A generalized Tullock contest," MPRA Paper 52102, University Library of Munich, Germany.
  2. Baye, Michael R. & Kovenock, Dan & Vries, Casper G. de, 2009. "Contests with rank-order spillovers," Discussion Papers, Research Unit: Market Processes and Governance SP II 2009-09, Social Science Research Center Berlin (WZB).
  3. Andreas Lange & John List & Michael Price, 2007. "Using lotteries to finance public goods: theory and experimental evidence," Artefactual Field Experiments 00381, The Field Experiments Website.
  4. Alcalde, José & Dahm, Matthias, 2010. "Rent seeking and rent dissipation: A neutrality result," Journal of Public Economics, Elsevier, vol. 94(1-2), pages 1-7, February.
  5. Marco Faravelli, 2011. "The Important Thing Is Not (Always) Winning but Taking Part: Funding Public Goods with Contests," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(1), pages 1-22, 02.
  6. Jacob K. Goeree & Emiel Maasland & Sander Onderstal & John L. Turner, 2005. "How (Not) to Raise Money," Journal of Political Economy, University of Chicago Press, vol. 113(4), pages 897-926, August.
  7. Alexander Matros & Daniel Armanios, 2009. "Tullock’s contest with reimbursements," Public Choice, Springer, vol. 141(1), pages 49-63, October.
  8. BOS, Olivier, . "How lotteries outperform auctions," CORE Discussion Papers RP 2321, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. Jason Shogren & John List & Michael Spencer & Stephen Swallow, 2008. "Rebate Rules in Threshold Public Good Provision," Artefactual Field Experiments 00476, The Field Experiments Website.
  10. Olivier Bos, 2008. "Charity Auctions for the Happy Few," CESifo Working Paper Series 2398, CESifo Group Munich.
  11. Luca Corazzini & Marco Faravelli & Luca Stanca, 2010. "A Prize To Give For: An Experiment on Public Good Funding Mechanisms," Economic Journal, Royal Economic Society, vol. 120(547), pages 944-967, 09.
  12. John Morgan, 2000. "Financing Public Goods by Means of Lotteries," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 761-784.
  13. Jeffrey Carpenter & Jessica Holmes & PeterHans Matthews, 2008. "Charity auctions: a field experiment," Economic Journal, Royal Economic Society, vol. 118(525), pages 92-113, 01.
  14. Arthur J.H.C. Schram & Sander Onderstal, 2009. "Bidding To Give: An Experimental Comparison Of Auctions For Charity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(2), pages 431-457, 05.
  15. Chung, Tai-Yeong, 1996. "Rent-Seeking Contest When the Prize Increases with Aggregate Efforts," Public Choice, Springer, vol. 87(1-2), pages 55-66, April.
  16. Elfenbein, Daniel W. & McManus, Brian, 2010. "Last-minute bidding in eBay charity auctions," Economics Letters, Elsevier, vol. 107(1), pages 42-45, April.
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