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Markets for Influence

Author

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  • Flavio Menezes

    (Department of Economics, University of Queensland)

  • John Quiggin

    (Department of Economics, University of Queensland)

Abstract

We specify an oligopoly game, where firms choose quantity in order to maximise profits, that is strategically equivalent to a standard Tullock rent- seeking game. We then show that the Tullock game may be interpreted as an oligopsonistic market for in?uence. Alternative specifications of the strategic variable give rise to a range of Nash equilibria with varying levels of rent dissipation

Suggested Citation

  • Flavio Menezes & John Quiggin, 2009. "Markets for Influence," Risk & Uncertainty Working Papers WPR09_2, Risk and Sustainable Management Group, University of Queensland.
  • Handle: RePEc:rsm:riskun:r09_2
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    File URL: http://www.uq.edu.au/rsmg/WP/WPR09_02.pdf
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    References listed on IDEAS

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    Cited by:

    1. Paulo Brito & Bipasa Datta & Huw Dixon, 2011. "The evolution of mixed conjectures in the rent-extraction game," Discussion Papers 11/06, Department of Economics, University of York.
    2. A. Aiche & E. Einy & O. Haimanko & D. Moreno & A. Sela & B. Shitovitz, 2019. "Information in Tullock contests," Theory and Decision, Springer, vol. 86(3), pages 303-323, May.
    3. Jean-Daniel Guigou & Bruno Lovat & Nicolas Treich, 2017. "Risky rents," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(2), pages 151-164, October.
    4. Walter Ferrarese, 2018. "Equilibrium Effort in Games with Homogeneous Production Functions and Homogeneous Valuation," CEIS Research Paper 432, Tor Vergata University, CEIS, revised 12 Nov 2021.
    5. Christian Ewerhart, 2015. "Contest success functions: the common-pool perspective," ECON - Working Papers 195, Department of Economics - University of Zurich.
    6. Jia, Hao & Skaperdas, Stergios & Vaidya, Samarth, 2013. "Contest functions: Theoretical foundations and issues in estimation," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 211-222.
    7. Menezes, Flavio M. & Quiggin, John, 2012. "More competitors or more competition? Market concentration and the intensity of competition," Economics Letters, Elsevier, vol. 117(3), pages 712-714.
    8. Murray, Cameron K., 2012. "Markets in political influence: rent-seeking, networks and groups," MPRA Paper 42070, University Library of Munich, Germany.
    9. Menezes, Flavio & Quiggin, John, 2013. "Inferring the strategy space from market outcomes," Risk and Sustainable Management Group Working Papers 151206, University of Queensland, School of Economics.
    10. Cortney Rodet & Andrew Smyth, 2018. "Experimental Evidence on the Cyclicality of Investment," Working Papers 18-02, Chapman University, Economic Science Institute.
    11. Cortney S. Rodet & Andrew Smyth, 2020. "Competitive blind spots and the cyclicality of investment: Experimental evidence," Southern Economic Journal, John Wiley & Sons, vol. 87(1), pages 274-315, July.

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    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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