The Evolution of Sharing Rules in Rent Seeking Contests: Incentives Crowd Out Cooperation
Modern societies are characterized by competing organizations that rely predominantly on incentive schemes to align the behavior of their members with the organizations’ objectives. This study contributes to explaining why in so many cases incentive schemes have gradually crowded out cooperation as an organization device. Our explanation does not draw on free-riding, the obvious Achilles’ heel of cooperation, but relies completely on fundamental group contest mechanisms. By investigating a canonical rent seeking model and adopting an evolutionary perspective, the analysis identifies shortcomings in previous results, sets the record straight, and explains why the process of incentivizing organizations is protracted.
|Date of creation:||21 Feb 2011|
|Contact details of provider:|| Postal: D-78457 Konstanz|
Web page: https://www.wiwi.uni-konstanz.de/en
More information through EDIRC
|Order Information:||Web: https://www.wiwi.uni-konstanz.de/en|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heinrich W. Ursprung, 1990. "Public Goods, Rent Dissipation, And Candidate Competition," Economics and Politics, Wiley Blackwell, vol. 2(2), pages 115-132, 07.
- Lazear, Edward P & Rosen, Sherwin, 1981.
"Rank-Order Tournaments as Optimum Labor Contracts,"
Journal of Political Economy,
University of Chicago Press, vol. 89(5), pages 841-864, October.
- Kahana, Nava & Qijun, Liu, 2010. "Endemic corruption," European Journal of Political Economy, Elsevier, vol. 26(1), pages 82-88, March.
- Baik, Kyung Hwan & Lee, Sanghack, 2007. "Collective rent seeking when sharing rules are private information," European Journal of Political Economy, Elsevier, vol. 23(3), pages 768-776, September.
- Baik, Kyung Hwan & Shogren, Jason F, 1995. "Competitive-Share Group Formation in Rent-Seeking Contests," Public Choice, Springer, vol. 83(1-2), pages 113-126, April.
- Ernesto Reuben & Jean-Robert Tyran, 2008.
"Everyone Is A Winner: Promoting Cooperation Through Non-Rival Intergroup Competition,"
08-26, University of Copenhagen. Department of Economics.
- Reuben, Ernesto & Tyran, Jean-Robert, 2010. "Everyone is a winner: Promoting cooperation through all-can-win intergroup competition," European Journal of Political Economy, Elsevier, vol. 26(1), pages 25-35, March.
- Reuben, Ernesto & Tyran, Jean-Robert, 2009. "Everyone is a Winner: Promoting Cooperation through All-Can-Win Intergroup Competition," IZA Discussion Papers 4112, Institute for the Study of Labor (IZA).
- Cheikbossian, Guillaume, 2005.
"Heterogenous Groups and Rent-Seeking for Public Goods,"
Cahiers du LASER (LASER Working Papers)
2005.16, LASER (Laboratoire de Science Economique de Richter), Faculty of Economics, University of Montpellier 1.
- Cheikbossian, Guillaume, 2008. "Heterogeneous groups and rent-seeking for public goods," European Journal of Political Economy, Elsevier, vol. 24(1), pages 133-150, March.
- Riechmann, Thomas & Weimann, Joachim, 2008.
"Competition as a coordination device: Experimental evidence from a minimum effort coordination game,"
European Journal of Political Economy,
Elsevier, vol. 24(2), pages 437-454, June.
- Thomas Riechmann & Joachim Weimann, 2004. "Competition as a Coordination Device. Experimental Evidence from a Minimum Effort Coordination Game," Game Theory and Information 0405011, EconWPA.
- Angelopoulos, Konstantinos & Philippopoulos, Apostolis & Vassilatos, Vanghelis, 2009. "The social cost of rent seeking in Europe," European Journal of Political Economy, Elsevier, vol. 25(3), pages 280-299, September.
- Nitzan, Shmuel, 1991. "Rent-Seeking with Non-identical Sharing Rules," Public Choice, Springer, vol. 71(1-2), pages 43-50, August.
- Lee, Sanghack, 1995. "Endogenous Sharing Rules in Collective-Group Rent-Seeking," Public Choice, Springer, vol. 85(1-2), pages 31-44, October.
- Arye Hillman, 2009. "Hobbes and the prophet Samuel on leviathan government," Public Choice, Springer, vol. 141(1), pages 1-4, October.
- Konrad, Kai A., 2004.
"Bidding in hierarchies,"
European Economic Review,
Elsevier, vol. 48(6), pages 1301-1308, December.
- Konrad, Kai A., 2003.
"Bidding in hierarchies
[Das Bieten in Hierarchien]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2003-27, Social Science Research Center Berlin (WZB).
- Konrad, Kai A., 2003. "Bidding in hierarchies
- Ansink, Erik & Weikard, Hans-Peter, 2009. "Contested water rights," European Journal of Political Economy, Elsevier, vol. 25(2), pages 247-260, June.
- Heller, William B. & Sieberg, Katri K., 2010. "Honor among thieves: Cooperation as a strategic response to functional unpleasantness," European Journal of Political Economy, Elsevier, vol. 26(3), pages 351-362, September.
- Arye L. Hillman & John G. Riley, 1987.
"Politically Contestable Rents and Transfers,"
UCLA Economics Working Papers
452, UCLA Department of Economics.
- Kaoru Ueda, 2002. "Oligopolization in collective rent-seeking," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(3), pages 613-626.
- Arce, Daniel G., 2010. "Corporate virtue: Treatment of whistle blowers and the punishment of violators," European Journal of Political Economy, Elsevier, vol. 26(3), pages 363-371, September.
- Shmuel Nitzan & Kaoru Ueda, 2010.
"Prize Sharing in Collective Contests,"
2010-08, Bar-Ilan University, Department of Economics.
- Gil Epstein & Yosef Mealem, 2009. "Group specific public goods, orchestration of interest groups with free riding," Public Choice, Springer, vol. 139(3), pages 357-369, June.
- Hausken, Kjell, 2000. "Cooperation and between-group competition," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 417-425, July.
- Aidt, T. & Hillman, A., 2008.
Cambridge Working Papers in Economics
0802, Faculty of Economics, University of Cambridge.
- Chen, Kang & Tang, Fang-Fang, 2009. "Cultural differences between Tibetans and ethnic Han Chinese in ultimatum bargaining experiments," European Journal of Political Economy, Elsevier, vol. 25(1), pages 78-84, March.
- Davis, Douglas D & Reilly, Robert J, 1999. "Rent-Seeking with Non-identical Sharing Rules: An Equilibrium Rescued," Public Choice, Springer, vol. 100(1-2), pages 31-38, July.
- Ryvkin, Dmitry, 2010. "Contests with private costs: Beyond two players," European Journal of Political Economy, Elsevier, vol. 26(4), pages 558-567, December.
- Katz, Eliakim & Tokatlidu, Julia, 1996. "Group competition for rents," European Journal of Political Economy, Elsevier, vol. 12(4), pages 599-607, December.
When requesting a correction, please mention this item's handle: RePEc:knz:dpteco:1102. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Office Ursprung)
If references are entirely missing, you can add them using this form.