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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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We conduct an experiment to uncover the reasons behind the typically large behavioral variation and low explanatory … 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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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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