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Asymmetric Two-Stage Group Rent-Seeking: Comparison of Two Contest Structures

Author

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  • William E. Stein

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  • Amnon Rapoport

Abstract

Two variations of a two-stage rent-seeking contest are considered. In the first stage of the Between-Group model, groups compete through the expenditure of resources by their members. Based on group expenditures, one winning group is probabilistically determined. On the second stage, members of the winning group compete with one another for an exogenous prize. In the Semi-Finals model a player is chosen from each group and then these players compete for the prize. Groups differ in size or in their valuation of the prize. Subgame-perfect equilibrium solutions are constructed for these two contest structures.

Suggested Citation

  • William E. Stein & Amnon Rapoport, 2004. "Asymmetric Two-Stage Group Rent-Seeking: Comparison of Two Contest Structures," Public Choice, Springer, vol. 118(1_2), pages 151-167, January.
  • Handle: RePEc:kap:pubcho:v:118:y:2004:i:1_2:p:151-167
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    Citations

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    Cited by:

    1. repec:bla:scandj:v:118:y:2016:i:4:p:816-840 is not listed on IDEAS
    2. Sutter, Matthias & Strassmair, Christina, 2009. "Communication, cooperation and collusion in team tournaments--An experimental study," Games and Economic Behavior, Elsevier, vol. 66(1), pages 506-525, May.
    3. Jay Pil Choi & Subhasish M. Chowdhury & Jaesoo Kim, 2016. "Group Contests with Internal Conflict and Power Asymmetry," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(4), pages 816-840, October.
    4. Johannes Münster & Klaas Staal, 2012. "How organizational structure can reduce rent-seeking," Public Choice, Springer, vol. 150(3), pages 579-594, March.
    5. Kyung Baik, 2008. "Contests with group-specific public-good prizes," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(1), pages 103-117, January.
    6. Robin Chark & Amnon Rapoport & Rami Zwick, 2011. "Experimental comparison of two multiple-stage contest designs with asymmetric players," Public Choice, Springer, vol. 147(3), pages 305-329, June.
    7. Gürtler, Oliver, 2006. "Contractual Incentive Provision and Commitment in Rent-Seeking Contests," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 100, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    8. Kyung Hwan Baik & Jong Hwa Lee, 2013. "Endogenous Timing In Contests With Delegation," Economic Inquiry, Western Economic Association International, vol. 51(4), pages 2044-2055, October.
    9. Dmitry Ryvkin, 2007. "Tullock contests of weakly heterogeneous players," Public Choice, Springer, vol. 132(1), pages 49-64, July.
    10. repec:elg:eechap:15325_5 is not listed on IDEAS
    11. Sina Risse, 2011. "Two-stage group rent-seeking with negatively interdependent preferences," Public Choice, Springer, vol. 147(3), pages 259-276, June.
    12. Marco Runkel, 2006. "Optimal contest design, closeness and the contest success function," Public Choice, Springer, vol. 129(1), pages 217-231, October.
    13. Giuseppe Dari-Mattiacci & Eric Langlais & Bruno Lovat & Francesco Parisi, 2013. "Asymmetries in Rent-Seeking," EconomiX Working Papers 2013-5, University of Paris Nanterre, EconomiX.
    14. William Stein & Amnon Rapoport, 2005. "Symmetric two-stage contests with budget constraints," Public Choice, Springer, vol. 124(3), pages 309-328, September.

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