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Delegation with multiple instruments in a rent-seeking contest

  • Schoonbeek, Lambert

    (Groningen University)

Abstract : We consider delegation in a rent-seeking contest with two players, where delegates have more instruments at their disposal than the main players. We endogenize both the decision to hire a delegate and the contingent fee offered to the delegates. We characterize the situations when either no, one or two players hire a delegate in equilibrium. We show that the decision to hire a delegate depends in a non-monotone way on the size of the contested prize.

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File URL: http://irs.ub.rug.nl/ppn/299114678
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Paper provided by University of Groningen, Research Institute SOM (Systems, Organisations and Management) in its series Research Report with number 06C11.

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Date of creation: 2006
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Handle: RePEc:dgr:rugsom:06c11
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