My role in connection with the efficient rent-seeking model (Tullock 1980) is, I think, a rather ill-omened one. I began the discussion by inventing a model with an apparent paradox. The market doesn’t clear even with free entry and competition. There have been a number of efforts to deal with this problem (Corcoran, 1984; I commented on it in the same issue, pp. 95–98). (1985) Corcoran and Karels and Higgins, Shughart, and Tollison (1985) are further efforts to solve the problem.
KeywordsNormal Return External Cost Marginal Return Apparent Paradox Free Entry
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- 1.The so called Hawk-Dove literature, helps to provide an explanation for this kind of behavior under some circumstances. Unfortunately, it is not applicable to the subject of this comment.Google Scholar
- 2.This involves rounding. There are seven players and 7 × 14.29 is of course lightly more than $100 but the matter is unimportant for the example.Google Scholar
- 3.I recently saw a propaganda movie about the Chinese communes. It was made several years ago, and would not be permitted in present day China, but I saw it in Philadelphia. In one sequence each of the Commune children was encouraged to work faster than the others.Google Scholar