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Delegation with multiple instruments in a rent-seeking contest

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  • 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.

Suggested Citation

  • Schoonbeek, Lambert, 2006. "Delegation with multiple instruments in a rent-seeking contest," Research Report 06C11, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    • Handle: RePEc:gro:rugsom:06c11
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    File URL: http://irs.ub.rug.nl/ppn/299114678
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    Cited by:

    1. is not listed on IDEAS
    2. Friedhelm Hentschel, 2023. "Alternative intervention mechanisms in rent-seeking contests," Economics of Governance, Springer, vol. 24(4), pages 453-471, December.
    3. Rusche, Christian, 2011. "Does Delegation Help to Prevent Spiteful Behavior?," Ruhr Economic Papers 270, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Lambert Schoonbeek, 2017. "Information And Endogenous Delegation In A Rent-Seeking Contest," Economic Inquiry, Western Economic Association International, vol. 55(3), pages 1497-1510, July.
    5. Christian Rusche, 2011. "Does Delegation Help to Prevent Spiteful Behavior?," Ruhr Economic Papers 0270, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    6. Park Sung-Hoon & Lee Sanghack, 2019. "How Do Risk-Averse Litigants Set Contingent Fees for Risk-Neutral Lawyers?," Review of Law & Economics, De Gruyter, vol. 15(2), pages 1-19, July.
    7. Baik, Kyung Hwan & Min, Daehong, 2025. "Reimbursement in contests with bilateral delegation," Economics Letters, Elsevier, vol. 253(C).

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