A partially exclusive rent-seeking contest

Samuli Leppälä

Journal of Economic Behavior & Organization, 2021, vol. 187, issue C, 60-75

Abstract: This study presents a novel contest model in which interest groups compete for partially exclusive rents, and the number of winners is endogenous. Partial exclusivity can explain the low empirical estimates of rent dissipation that create the Tullock paradox. However, partial exclusivity also increases aggregate effort and social waste. The effort-maximising contest design follows a simple rule of limiting the expected number of winners to half the number of contestants.

Keywords: Rent seeking; Interest groups; Multiple-winner contests; Rent dissipation; Contest design (search for similar items in EconPapers)
JEL-codes: C72 D72 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:187:y:2021:i:c:p:60-75

DOI: 10.1016/j.jebo.2021.04.018

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