Showing 1 - 10 of 21
A hierarchically structured rent-seeking contest may be associated with lower equilibrium expenditure than a corresponding flat contest. In this chapter we discuss how this fact may be used to explain the structure of organizations such as firms, including why firms commonly have outside owners.
Persistent link: https://www.econbiz.de/10011381246
probabilistic contest. Examples of such contests may be international conflict, litigation, and elections. We show, in particular …
Persistent link: https://www.econbiz.de/10005423852
A hierarchically structured rent-seeking contest may be associated with lower equilibrium expenditure than a corresponding flat contest. In this chapter we discuss how this fact may be used to explain the structure of organizations such as firms, including why firms commonly have outside owners.
Persistent link: https://www.econbiz.de/10010778809
This paper studies strategic delegation in two-player contests for an indivisible prize (as in, e.g. litigation) where …
Persistent link: https://www.econbiz.de/10005649161
In a first-price all-pay auction buyers have an incentive to delegate the bidding to agents and to provide these agents with incentives to make bids that differ from the bids the buyers would like to make. Both buyers are better off in this strictly non-cooperative delegation equilibrium and the...
Persistent link: https://www.econbiz.de/10005649176
The paper explores the implications for explaining the endogenous formation of jurisdictions of modelling the political process as a costly fight to acquire shares of the GNP pie. It is shown, in particular, that a system of federalism is especially significant in ameliorating distributional...
Persistent link: https://www.econbiz.de/10005649517
three separate experiments: a dictator game experiment, a complete information trust game experiment, and a hidden action … trust game experiment. In the experiments we inform donors about the beliefs of their respective recipients, while eliciting …-order beliefs is close to zero in all three experiments. …
Persistent link: https://www.econbiz.de/10010281158
Hedging risks is an important rationale for the existence of forward markets. However, Allaz and Vila (1993) show that duopolists can also have a strategic motive to sell forward, irrespective of exogenous uncertainties. Moreover, in their model the possibility of forward trading increases...
Persistent link: https://www.econbiz.de/10010281331
We experimentally investigate the effect of cheap talk in a bargaining game with one-sided asymmetric information. A seller has private information about his or her skill and is provided an opportunity to communicate this information to a buyer through a written message. Four different...
Persistent link: https://www.econbiz.de/10010281340
Experiments in psychology, where subjects estimate confidence intervals to a series of factual questions, have shown …
Persistent link: https://www.econbiz.de/10010281394