Tullock's Rent-Seeking Contest with a Minimum Expenditure Requirement
The authors consider a rent-seeking contest of the kind introduced by Tullock (1980) in which two players compete for a monopoly rent. They extend the contest by requiring that if a player puts forward an effort, his expenditures must be larger than or equal to some minimum level. The authors show that, depending on the model parameters, the number of Nash equilibria of the extended model can be zero, one, two, or four. Furthermore, it turns out that the extent of rent dissipation in a Nash equilibrium of the extended model can be larger than, equal to, or smaller than the extent of rent dissipation in the unique Nash equilibrium of the original model. Copyright 1997 by Kluwer Academic Publishers
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 93 (1997)
Issue (Month): 3-4 (December)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/public+finance/journal/11127/PS2|