Delegation in a group-contest
Lambert Schoonbeek
No 02F03, Research Report from University of Groningen, Research Institute SOM (Systems, Organisations and Management)
Abstract:
It is known that the option of delegation in a rent-seeking contest between two individuals leads to a prisoner’s dilemma. In equilibrium no player hires a delegate, while it is Pareto-efficient if both would hire one. This paper shows that this result does not generalize to a contest between the members of two groups. We further provide the conditions under which zero, one, or both groups hire a delegate in equilibrium.
Date: 2002
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Related works:
Journal Article: Delegation in a group-contest (2004) 
Working Paper: Delegation in a group-contest (2002) 
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