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We introduce three variations of the Hirshleifer-Skaperdas conflict game to study experimentally the effects of post-conflict behavior and repeated interaction on the allocation of effort between production and appropriation. Without repeated interaction, destruction of resources by defeated...
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very different effects depending on the contest structure. We observe the highest rent dissipation in stochastic contests … when players only get feedback on own choices and earnings. In these contests aggregate expenditures usually exceed the …. In contrast, in deterministic contests average expenditures converge to equilibrium levels when subjects only get …
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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.
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This paper studies a large class of imperfectly discriminating contests, referred to as elastic contests, that induce … definite answers regarding the extent of rent dissipation in Tullock contests with intermediate values of the decisiveness …
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power of Nash equilibrium observed in Tullock contests. In our standard contest treatment, only 7% of choices are consistent … huge behavioral variation typically observed in Tullock contests. …
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According to New Institutional Economics, two or more individuals will found an organization, if it leads to a benefit compared to market allocation. A natural consequence will then be internal rent seeking. We discuss the interrelation between profits, rent seeking and the foundation of...
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