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The Number of Rent-Seekers and Aggregate Rent-Seeking Expenditures: An Unpleasant Result

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  • Amegashie, J Atsu

Abstract

The author examines a rent-seeking contest in which the winner gets a minimum rent but also gets an additional rent that is an increasing function of his lobbying expenditure. He gives real-world examples of such rent-seeking competitions. Contrary to the standard result in the rent-seeking literature, the author obtains the perverse result that aggregate rent-seeking expenditures may be inversely related to the number of rentseekers. However, he notes that, even if this result holds, the cost of administering rent-seeking competitions may imply that society is better-off with fewer contenders than with an infinitely large number of contenders, although the optimal number may not be the smallest number. Copyright 1999 by Kluwer Academic Publishers

Suggested Citation

  • Amegashie, J Atsu, 1999. "The Number of Rent-Seekers and Aggregate Rent-Seeking Expenditures: An Unpleasant Result," Public Choice, Springer, vol. 99(1-2), pages 57-62, April.
  • Handle: RePEc:kap:pubcho:v:99:y:1999:i:1-2:p:57-62
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    Citations

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    Cited by:

    1. Chowdhury, Subhasish M. & Sheremeta, Roman M., 2011. "Multiple equilibria in Tullock contests," Economics Letters, Elsevier, vol. 112(2), pages 216-219, August.
    2. Mustafa Yildirim, 2015. "Accuracy in contests: players’ perspective," Review of Economic Design, Springer;Society for Economic Design, vol. 19(1), pages 67-90, March.
    3. Subhashish Modak Chowdhury, 2009. "The all-pay auction with non-monotonic payoff," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 09-09, School of Economics, University of East Anglia, Norwich, UK..
    4. Subhasish Chowdhury & Roman Sheremeta, 2015. "Strategically equivalent contests," Theory and Decision, Springer, vol. 78(4), pages 587-601, April.
    5. Amegashie, J. Atsu, 2001. "An all-pay auction with a pure-strategy equilibrium," Economics Letters, Elsevier, vol. 70(1), pages 79-82, January.
    6. Luis Corchón, 2007. "The theory of contests: a survey," Review of Economic Design, Springer;Society for Economic Design, vol. 11(2), pages 69-100, September.
    7. Lisa Anderson & Beth Freeborn, 2010. "Varying the intensity of competition in a multiple prize rent seeking experiment," Public Choice, Springer, vol. 143(1), pages 237-254, April.
    8. Andreas Hefti, 2016. "Distributional comparative statics with heterogeneous agents," ECON - Working Papers 237, Department of Economics - University of Zurich.
    9. Subhasish Chowdhury & Roman Sheremeta, 2011. "A generalized Tullock contest," Public Choice, Springer, vol. 147(3), pages 413-420, June.
    10. repec:eee:jeborg:v:139:y:2017:i:c:p:152-165 is not listed on IDEAS
    11. Giuseppe Dari-Mattiacci & Eric Langlais & Bruno Lovat & Francesco Parisi, 2007. "Crowding-out in productive and redistributive rent-seeking," Public Choice, Springer, vol. 133(1), pages 199-229, October.
    12. Adriana Gama & David Michael Rietzke, 2017. "Robust Comparative Statics in Contests," Working Papers 173174403, Lancaster University Management School, Economics Department.
    13. J. Atsu Amegashie, 2000. "A political economy model of immigration quotas," Discussion Papers dp00-19, Department of Economics, Simon Fraser University, revised 19 Sep 2000.

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