Rents, dissipation and lost treasures: Comment
- 58 Downloads
In an interesting recent paper, Dari-Mattiacci and Parisi (2005) extended Tullock's (1980) rent-seeking game with an entry decision. The mixed strategies identified by Dari-Mattiacci and Parisi for the case of increasing returns in the contest success function (r2) do not constitute an equilibrium of the game they study. However, these strategies are an equilibrium if the strategy space of the game is restricted by a minimum expenditure requirement, and this minimum expenditure requirement is an element of a specific interval.
Unable to display preview. Download preview PDF.
- Baye, M.R., Kovenock, D., & de Vries, C.G. (1994). The solution to the Tullock rent-seeking game when R2: mixed strategy equilibria and mean dissipation rates. Public Choice, 81, 363–380.Google Scholar
- Corcoran, W.J., & Karels, G.V. (1985). Rent-seeking behavior in the long run. Public Choice, 46, 227–246.Google Scholar
- Higgins, R.S., Shughart, W.F., II, & Tollison, R.D. (1985). Free entry and efficient rent-seeking. Public Choice, 46, 247–258.Google Scholar
- Hillman, A.L., & Samet, D. (1987). Dissipation of contestable rents by small numbers of contenders. Public Choice, 54, 63–82.Google Scholar
- Lockard, A., & Tullock, G. (Eds.) (2000). Efficient rent-seeking: chronicle of an intellectual quagmire. Boston: Kluwer.Google Scholar
- Schoonbeek, L., & Kooreman, P. (1997). Tullock's rent-seeking contest with a minimum expenditure requirement. Public Choice, 93, 477–486.Google Scholar
- Tullock, G. (1980). Efficient rent-seeking. In: Buchanan, J.M., Tollison, G. & Tullock, G. (Eds.), Toward a theory of the rent-seeking society (pp. 97–112). College Station: Texas A&M University Press.Google Scholar
- Yang, C.-L. (1993). Cooperation by credible threats: on the social costs of transfer contests under uncertainty. Journal of Institutional and Theoretical Economics, 149/3, 559–578.Google Scholar