Technological determinants of the group-size paradox : revised and extended version

Martin Kolmar; Hendrik Rommeswinkel

The present paper analyzes the occurrence of the group-size paradox in situations in which groups compete for rents, allowing for degrees of rivalness of the rent among group members. We provide two intuitive criteria which for groups with homogenous valuations of the rent determine whether there are advantages or disadvantages for larger groups: group-size biasedness and returns to scale. For groups with heterogenous valuations, the complementarity of group members' efforts is shown to play a role as a further factor.

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Year of publication:	2011 ; Revised and extended version
Authors:	Kolmar, Martin ; Rommeswinkel, Hendrik
Publisher:	St. Gallen : Univ. of St. Gallen Law School
Subject:	Contests \| Public goods \| Group-size paradox \| Interessenvertretung \| Interest group \| Soziale Gruppe \| Social group \| Wettbewerb \| Competition \| Öffentliche Güter \| Rent-Seeking \| Rent seeking \| Theorie \| Theory

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