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Returns to effort in rent-seeking games

Authors :
Francesco Parisi
Giuseppe Dari-Mattiacci
RS: FdR IC Aansprakelijkheid
Amsterdam Center for Law and Economics (FdR, FEB)
ABS Other Research (FEB)
Finance (ABS, FEB)
ACLE (FdR)
Dari-Mattiacci G.
Parisi F.
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

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