Baik, Kyung Hwan; Lee, Sanghack - In: Economic Inquiry 39 (2001) 4, pp. 672-84
We consider a rent-seeking contest in which players can form strategic groups before expending their outlays. We examine the profitability of endogenous group formation and the effect of such group formation on rent dissipation. We show the following: When just one strategic group is formed in...