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We investigate observed rent dissipation-the ratio of the total costs of rent seeking to the monetary value of the rent-in winner-take-all and share contests, where preferences are more general than usually assumed in the literature. With concave valuation of the rent, we find that contests can...
Persistent link: https://www.econbiz.de/10014418203
Combining rent-seeking and menu auction models allows the study of efficiency in a political economy where lobbying … creates rents that politicians expend resources to obtain. Policy choices, lobbying, and rent-seeking are determined …
Persistent link: https://www.econbiz.de/10014077985
An organization must make a binary choice in each of two periods. The optimal choice depends on an unknown state of nature. The leader of the organization has a stock of political capital and observes a private signal of the state. The leader faces an inter-temporal choice problem. She may...
Persistent link: https://www.econbiz.de/10012889505
This paper measures and analyzes explicit returns to United States firms through lobbying efforts and motivated … dependent variables for firms upon increase in annual lobbying expenditures, particularly when such firms are more profitable …. New contributions to the empirical investigation of lobbying include the use of previously unexplored and updated …
Persistent link: https://www.econbiz.de/10013242470
allowing for the possibility that policymakers also may be influenced by the rent-seeking (lobbying) behavior of businesses …
Persistent link: https://www.econbiz.de/10013141085
Government intervention often gives rise to contests and the government can influence their outcome by choosing their type. We consider a contest with two interest groups: one that is governed by a central planner and one that is not. Rent dissipation is compared under two well-known contest...
Persistent link: https://www.econbiz.de/10013061935
allowing for the possibility that policymakers also may be influenced by the rent-seeking (lobbying) behavior of businesses …
Persistent link: https://www.econbiz.de/10003985850
The existing literature has shown that special interest groups can have both growth enhancing and retarding effects on an economy. In either case it is always assumed that the nature of the special interest groups remains constant over time. The hypothesis of this paper is that a dynamic...
Persistent link: https://www.econbiz.de/10009766682