On the Strategic Advantage of Interdependent Preferences in Rent-Seeking Contests

Tobias Guse and Burkhard Hehenkamp

Discussion Papers in Economics from University of Dortmund, Department of Economics

Abstract: We study rent-seeking contests, where the set of players contains both players with independent preferences and players with interdependent preferences. It turns out that the latter experience a strategic advantage in general two-player contests and in n-player-contests with non-increasing returns to scale technologies. Finally, we illustrate our findings for the special cases of an additively separable preference function.

Pages: 37 pages
Date: 2004-10
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Related works:
Journal Article: The strategic advantage of interdependent preferences in rent-seeking contests (2006)
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