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Lobbying contests with alternative instruments

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Listed:
  • Gil S. Epstein
  • Carsten Hefeker

Abstract

This is a model of a contest where, in order to win, each opponent can use two instruments. The probabilities of winning are explored, as well as the expenditures of the interest groups, and the relative rent-dissipation in both cases where the players have the option to use only one instrument (the standard Tullock contest) and where the players have the option to use two instruments in the contest. We show that the use of two instruments strengthens the player with the higher stake, decreases the relative rent dissipation and it decreases total expenditure if the parties are sufficiently asymmetric. Copyright Springer-Verlag Berlin Heidelberg 2003

Suggested Citation

  • Gil S. Epstein & Carsten Hefeker, 2003. "Lobbying contests with alternative instruments," Economics of Governance, Springer, vol. 4(1), pages 81-89, April.
  • Handle: RePEc:spr:ecogov:v:4:y:2003:i:1:p:81-89 DOI: 10.1007/s101010200049
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Caruso, Raul, 2007. "Conflict and Conflict Managment with Asymmetric Stakes (The Bad-Cop and the Good Cop part II)," MPRA Paper 1438, University Library of Munich, Germany.
    2. Curry Philip A. & Mongrain Steeve, 2009. "Deterrence in Rank-Order Tournaments," Review of Law & Economics, De Gruyter, vol. 5(1), pages 723-740, December.
    3. Flavio Menezes & John Quiggin, 2007. "Games without Rules," Theory and Decision, Springer, pages 315-347.
    4. Konrad, Kai A., 2005. "Tournaments and Multiple Productive Inputs: The Case of Performance Enhancing Drugs," IZA Discussion Papers 1844, Institute for the Study of Labor (IZA).
    5. Caruso Raul, 2006. "Conflict and Conflict Management with Interdependent Instruments and Asymmetric Stakes, (The Good-Cop and the Bad-Cop Game)," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 12(1), pages 1-55, September.
    6. Kahana, Nava & Klunover, Doron, 2014. "Rent seeking and the excess burden of taxation," European Journal of Political Economy, Elsevier, vol. 35(C), pages 158-167.
    7. Raul Caruso, 2008. "Reciprocity in the shadow of threat," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), pages 91-111.
    8. Maria Arbatskaya & Hugo Mialon, 2010. "Multi-activity contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), pages 23-43.
    9. Oliver Gürtler & Matthias Kräkel, 2009. "Hostile takeover and costly merger control," Public Choice, Springer, vol. 141(3), pages 371-389, December.
    10. Münster, Johannes, 2006. "Contests with Investment," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 120, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    11. Maria Arbatskaya & Hugo M. Mialon, 2012. "Dynamic Multi-Activity Contests," Scandinavian Journal of Economics, Wiley Blackwell, vol. 114(2), pages 520-538, June.
    12. Caruso, Raul, 2007. "THE Economics of Match-Fixing," MPRA Paper 3085, University Library of Munich, Germany.
    13. Münster, Johannes, 2008. "Group contest success functions
      [Group Contest Success Functions]
      ," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-20, Social Science Research Center Berlin (WZB).
    14. Kahana, Nava & Klunover, Doron, 2014. "Rent Seeking and the Excess Burden of Taxation," IZA Discussion Papers 8160, Institute for the Study of Labor (IZA).
    15. Münster, Johannes, 2006. "Contests with investment
      [Wettkämpfe mit Investitionen]
      ," Discussion Papers, Research Unit: Market Processes and Governance SP II 2006-09, Social Science Research Center Berlin (WZB).
    16. Lambert Schoonbeek, 2007. "Delegation with multiple instruments in a rent-seeking contest," Public Choice, Springer, pages 453-464.
    17. Raul Caruso, 2012. "Contest with cooperative behavior: a note," Economics Bulletin, AccessEcon, vol. 32(2), pages 1747-1754.
    18. Krakel, Matthias, 2007. "Doping and cheating in contest-like situations," European Journal of Political Economy, Elsevier, vol. 23(4), pages 988-1006, December.
    19. Johannes Münster, 2009. "Group contest success functions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), pages 345-357.
    20. Matthias Kräkel, 2004. "R&D spillovers and strategic delegation in oligopolistic contests," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 147-156.
    21. Johannes Münster, 2007. "Contests with investment," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(8), pages 849-862.

    More about this item

    Keywords

    Key words: Rent-seeking; rent-dissipation; lobbying; JEL Classification: C72; D72;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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