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of the lobbying investment depends on whether or not the candidates are willing to respond and able to collude on low …-tax policies that do not harm their relative chances in the elections. In the experiment, we find that lobbying is never successful … when the lobbyist and candidates interact just once. By contrast, it yields substantially lower redistribution in about 40 …
Persistent link: https://www.econbiz.de/10008742961
Two wealth effects typically arise in any contest: i) wealth decreases the marginal cost of effort, but also ii) decreases the marginal benefit of winning the contest. In this paper, we introduce three types of strategic contest models depending on whether the first, second, or both wealth...
Persistent link: https://www.econbiz.de/10010818853
We study the interaction between competitive markets and income redistribution that reallocates unequal pre-tax market … (DA) with exogenous zero or full redistribution. In another setup, after trading, they vote on redistributive tax policies … in a majoritarian election with two competing candidates. This results in virtually full redistribution, even when …
Persistent link: https://www.econbiz.de/10011056101
Persistent link: https://www.econbiz.de/10011091655
Bazaar governance tries to describe how market power is exercised. It involves a study of cooperation and coercion in bazaar. It is about solidarity, monopoly, networking and hierarchies. The informal nature of bazaar avoids the need to have any size distribution of governance. In other words,...
Persistent link: https://www.econbiz.de/10012725386
Throughout human history, polities have found it necessary to devote resources towards maintaining security from other polities or to prosecute a war against them. This paper explores the evolution of the war economy, as well as the circumstances which mandated and instruments which allowed the...
Persistent link: https://www.econbiz.de/10010965601
I compare certification and self-regulation, two widely used quality assurance mechanisms in markets where consumers do not observe the quality of goods. Certification is a mechanism in which an external firm oers a certificate to producers who undergo a testing procedure, issues the certificate...
Persistent link: https://www.econbiz.de/10005178146
This paper studies a large class of imperfectly discriminating contests, referred to as elastic contests, that induce players to either overbid a standing bid or to abstain from bidding altogether. Many common forms of contest are elastic. In any equilibrium of an elastic contest, there is...
Persistent link: https://www.econbiz.de/10010817262
Persistent link: https://www.econbiz.de/10008584548
This paper considers rent-seeking games in which a small percentage change in a player's bid has a large percentage impact on her odds of winning, i.e., on the ratio of her respective probabilities of winning and losing. An example is the Tullock contest with a high R. The analysis provides a...
Persistent link: https://www.econbiz.de/10011145357