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Contests with interdependent preferences

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  • Sherrill Shaffer

Abstract

Relaxing the common assumption of purely self-interested preferences in contests, it is shown that altruism (bilateral or unilateral) reduces equilibrium rent-seeking effort. The effects on net payoffs are more complex. Strategic interdependence is possible, but the symmetric equilibrium is pure self-interest.

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  • Sherrill Shaffer, 2006. "Contests with interdependent preferences," Applied Economics Letters, Taylor & Francis Journals, vol. 13(13), pages 877-880.
    • Handle: RePEc:taf:apeclt:v:13:y:2006:i:13:p:877-880
    DOI: 10.1080/13504850500425477
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    Cited by:

    1. Frederik Schmidt, 2009. "Evolutionary stability of altruism and envy in Tullock contests," Economics of Governance, Springer, vol. 10(3), pages 247-259, July.
    2. Sina Risse, 2011. "Two-stage group rent-seeking with negatively interdependent preferences," Public Choice, Springer, vol. 147(3), pages 259-276, June.
    3. Sung-Hoon Park & Jeong-Yoo Kim, 2022. "Evolutionary stability of preferences: altruism, selfishness, and envy," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(2), pages 349-363, February.

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