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Competitive-Share Group Formation in Rent-Seeking Contests

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  • Baik, Kyung Hwan
  • Shogren, Jason F

Abstract

The authors examine the possibility of forming a competitive-share group in rent-seeking contests. The competitive-share group has the following characteristics: the group is treated as a single player competing with the nonmembers to win the rent, the members choose their outlays noncooperatively, and the members compete to take larger shares of the rent. The authors show that the competitive-share group is always formed voluntarily. One important consequence of such group formation is that rent dissipation is less relative to individual rent seeking--in other words, the social cost associated with rent seeking is less. Copyright 1995 by Kluwer Academic Publishers

Suggested Citation

  • Baik, Kyung Hwan & Shogren, Jason F, 1995. "Competitive-Share Group Formation in Rent-Seeking Contests," Public Choice, Springer, vol. 83(1-2), pages 113-126, April.
  • Handle: RePEc:kap:pubcho:v:83:y:1995:i:1-2:p:113-26
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    References listed on IDEAS

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    2. Gordon Tullock, 1981. "Why so much stability," Public Choice, Springer, vol. 37(2), pages 189-204, January.
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    Cited by:

    1. Baik, Kyung Hwan & Lee, Sanghack, 2007. "Collective rent seeking when sharing rules are private information," European Journal of Political Economy, Elsevier, vol. 23(3), pages 768-776, September.
    2. Anna Gunnthorsdottir & Amnon Rapoport, 2003. "The effect of sharing rules on group competition," Experimental 0307003, EconWPA.
    3. Pau Balart & Sabine Flamand & Orestis Troumpounis, 2016. "Strategic choice of sharing rules in collective contests," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(2), pages 239-262, February.
    4. Dijkstra, Bouwe R., 1998. "A two-stage rent-seeking contest for instrument choice and revenue division, applied to environmental policy," European Journal of Political Economy, Elsevier, vol. 14(2), pages 281-301, May.
    5. Vincent Anesi, 2009. "Moral hazard and free riding in collective action," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 32(2), pages 197-219, February.
    6. Ahn, T.K. & Isaac, R. Mark & Salmon, Timothy C., 2011. "Rent seeking in groups," International Journal of Industrial Organization, Elsevier, vol. 29(1), pages 116-125, January.
    7. Kjell Hausken, 2005. "Production and Conflict Models Versus Rent-Seeking Models," Public Choice, Springer, vol. 123(1), pages 59-93, April.
    8. Santiago Sánchez-Pagés, 2007. "Endogenous coalition formation in contests," Review of Economic Design, Springer;Society for Economic Design, vol. 11(2), pages 139-163, September.
    9. Joshi, Sumit, 2008. "Endogenous formation of coalitions in a model of a race," Journal of Economic Behavior & Organization, Elsevier, vol. 65(1), pages 62-85, January.
    10. Lee, Sanghack & Hyeong Kang, J., 1998. "Collective contests with externalities," European Journal of Political Economy, Elsevier, vol. 14(4), pages 727-738, November.
    11. Heinrich Ursprung, 2012. "The evolution of sharing rules in rent seeking contests: Incentives crowd out cooperation," Public Choice, Springer, vol. 153(1), pages 149-161, October.
    12. Changxia Ke, 2011. "Fight Alone or Together? The Need to Belong," Working Papers fight_alone_or_together, Max Planck Institute for Tax Law and Public Finance.
    13. Gunnthorsdottir, Anna & Rapoport, Amnon, 2006. "Embedding social dilemmas in intergroup competition reduces free-riding," Organizational Behavior and Human Decision Processes, Elsevier, vol. 101(2), pages 184-199, November.
    14. Edoardo Di Porto & Angela Parenti & Sonia Paty & Zineb Abidi, 2017. "Local government cooperation at work: a control function approach," Journal of Economic Geography, Oxford University Press, pages 435-463.
    15. Francis Bloch, 2009. "Endogenous formation of alliances in conflicts," Working Papers hal-00435387, HAL.
    16. Baik, Kyung Hwan & Dijkstra, Bouwe R. & Lee, Sanghack & Lee, Shi Young, 2006. "The equivalence of rent-seeking outcomes for competitive-share and strategic groups," European Journal of Political Economy, Elsevier, vol. 22(2), pages 337-342, June.
    17. Nilssen, Tore & Sorgard, Lars, 1998. "Sequential horizontal mergers," European Economic Review, Elsevier, vol. 42(9), pages 1683-1702, November.
    18. Hwan Baik, Kyung & Lee, Sanghack, 1997. "Collective rent seeking with endogenous group sizes," European Journal of Political Economy, Elsevier, vol. 13(1), pages 121-130, February.
    19. Baik, Kyung Hwan & Kim, In-Gyu, 1997. "Delegation in contests," European Journal of Political Economy, Elsevier, vol. 13(2), pages 281-298, May.
    20. repec:elg:eechap:15325_6 is not listed on IDEAS
    21. Hausken, Kjell, 2000. "Migration and intergroup conflict," Economics Letters, Elsevier, vol. 69(3), pages 327-331, December.
    22. Hausken, Kjell, 1998. "Collective rent seeking and division of labor1," European Journal of Political Economy, Elsevier, vol. 14(4), pages 739-768, November.
    23. Dijkstra, Bouwe R., 1998. "Cooperation by way of support in a rent seeking contest for a public good," European Journal of Political Economy, Elsevier, vol. 14(4), pages 703-725, November.

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