The present paper analyses rent-seeking games in which competitors for a rent can act and react finitely or infinitely often. It argues for an infinite-move model as the most appropriate specification of a model of rent-seeking. Dynamic equilibrium analysis of this game suggests that wasteful expenditures in rent-seeking competitions are lower than previously studied static (simultaneous-move) games predict. Journal of Economic Literature Classification Numbers: D72, C73.
KeywordsNash Equilibrium Indifference Curve Subgame Perfect Equilibrium Reaction Curve Rent Dissipation
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