In this paper, we consider a symmetric rent-seeking contest, where employees lobby for a governmental contract on … behalf of firms. The only verifiable information is which firm is assigned the contract. We derive the optimal wage contracts … of the employees and analyze, whether commitment by determining the wage contract prior to the competitor is profitable …

financing markets (e.g., financing conditions, financing covenants, and cooperation covenants; and reverse termination fees …). New contract language also includes dispute resolution provisions (e.g., jury waivers, forum selection clauses) that are …