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Returns to effort in rent-seeking games
- Source :
- Public Choice, 159(1), 99-104. Springer, Public Choice, 159(1-2), 99-104. Springer Netherlands
- Publication Year :
- 2012
- Publisher :
- Springer Science and Business Media LLC, 2012.
-
Abstract
- In the traditional formulation of rent-seeking games, increasing returns to effort are characterized by an exponent r>1. However, when the value of the rent is normalized to 1, the players' effort levels A and B will typically be less than 1. Thus, when A1, the value of A r decreases as r increases, contradicting the interpretation of r>1 as representing increasing returns to effort. This apparent defect in the mathematization of the problem seems to suggest that a different interpretation of r is required whenever A
- Subjects :
- Economics and Econometrics
Returns to scale
Sociology and Political Science
media_common.quotation_subject
Interpretation (model theory)
Microeconomics
Returns to effort
Value (economics)
Econometrics
Economics
Exponent
Rent-seeking game
Rent-seeking
Normalization of value
Public finance
media_common
Subjects
Details
- ISSN :
- 15737101 and 00485829
- Volume :
- 159
- Database :
- OpenAIRE
- Journal :
- Public Choice
- Accession number :
- edsair.doi.dedup.....00546eabc9db50b77c7ae5c1c8ffc9c0
- Full Text :
- https://doi.org/10.1007/s11127-012-0020-3