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On the Strategic Advantage of Interdependent Preferences in Rent-Seeking Contests

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  • Tobias Guse
  • Burkhard Hehenkamp

Abstract

We study rent-seeking contests, where the set of players contains both players with independent preferences and players with interdependent preferences. It turns out that the latter experience a strategic advantage in general two-player contests and in n-player-contests with non-increasing returns to scale technologies. Finally, we illustrate our findings for the special cases of an additively separable preference function.

Suggested Citation

  • Tobias Guse & Burkhard Hehenkamp, 2004. "On the Strategic Advantage of Interdependent Preferences in Rent-Seeking Contests," Discussion Papers in Economics 03_02, University of Dortmund, Department of Economics.
  • Handle: RePEc:mik:wpaper:03_02
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