EconPapers    
Economics at your fingertips  
 

WINNER‐HELP‐LOSER GROUP FORMATION IN RENT‐SEEKING CONTESTS*

Kyung Hwan Baik

Economics and Politics, 1994, vol. 6, issue 2, 147-162

Abstract: We define a winner‐help‐loser group in a rent‐seeking contest as follows: (a) the member players compete noncooperatively to win the rent, and (b) if a member player wins the rent, he helps the losing member players according to the previously written agreement. We demonstrate that one and only one winner‐help‐loser group is formed voluntarily. One important consequence of such group formation is that rent dissipation is small relative to individual rent seeking. Therefore, such group formation decreases the social cost associated with rent seeking and thus decreases the economic inefficiency of rent seeking.

Date: 1994
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15) Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/j.1468-0343.1994.tb00093.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecopol:v:6:y:1994:i:2:p:147-162

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0954-1985

Access Statistics for this article

Economics and Politics is currently edited by Peter Rosendorff

More articles in Economics and Politics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-05-24
Handle: RePEc:bla:ecopol:v:6:y:1994:i:2:p:147-162