In a series of experiments we show that people learn to playthe efficient outcome in an open-ended rent-seeking game. Thisresult persists despite quite different experimentenvironments and designs, like different propensities ofcompetition, group sizes etc., and is interpretable as aresolution of the so-called Tullock paradox which states thatreal-world rent-seeking expenditures are much lower than whatthe standard rent-seeking model predicts.
Unable to display preview. Download preview PDF.
- Hillman, A. and Sammet, D. (1987). Dissipation of contestable rents by small numbers of contenders. Public Choice 54: 63-82.Google Scholar
- Leininger, W. and Yang, C.-L. (1994). Dynamic rent-seeking games. Games and Economic Behavior 7: 406-427.Google Scholar
- Nitzan, S. (1994). Modeling rent-seeking contests. European Journal of Political Economy 10: 41-60.Google Scholar
- Ockenfels, A. and Weimann, J. (1999). Types and patterns: An experimental East-West German comparison of cooperation and solidarity. Journal of Public Economics 71: 275-287.Google Scholar
- Posner, R.A. (1975). The social costs of monopoly and regulation. Journal of Law and Economics 83: 807-827.Google Scholar
- Tullock, G. (1967). The welfare costs of tariffs, monopoly and theft. Western Economic Journal 5: 224-232.Google Scholar
- Tullock, G. (1980). Efficient rent seeking. In J.M. Buchanan, R.D. Tollison and G. Tullock (Eds.), Toward a theory of rent-seeking society, 97-112. College Station: Texas A&;M University Press.Google Scholar
- Tullock, G. (1989). The economics of special privilege and rent-seeking. Boston: Kluwer Academic Publishers.Google Scholar
- Weimann, J., Yang, C. and Vogt, C. (2000). An experiment on sequential rent seeking. Journal of Economic Behavior and Organisation 41: 405-426.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: 559-571.Google Scholar
- Yang, C.-L. (1994). A simple extension of the Dasgupta-Maskin existence theorem for discontinuous games with an application to the theory of rent-seeking. Economics Letters 145: 181-184.Google Scholar
- Yang, C.-L. (1999). A complete resolution of the efficient rent seeking paradox. Taiwan Economic Review 27: 431-459.Google Scholar