TY - JOUR
T1 - Rents, dissipation and lost treasures
T2 - Rethinking Tullock's paradox
AU - Dari-Mattiacci, Giuseppe
AU - Parisi, Francesco
PY - 2005/9
Y1 - 2005/9
N2 - In this paper we revisit Tullock's paradox (Tullock, 1980) and consider a rent-seeking game in which parties face increasing returns to effort. We allow parties to randomize their strategies and give them an exit option. Given the mixed participation strategies of the parties, valuable rents may occasionally remain unexploited. We consider such a lost-treasure effect as an additional cost of rent seeking and examine how the expected value of such a lost rent varies with changes in the parameters of the problem.
AB - In this paper we revisit Tullock's paradox (Tullock, 1980) and consider a rent-seeking game in which parties face increasing returns to effort. We allow parties to randomize their strategies and give them an exit option. Given the mixed participation strategies of the parties, valuable rents may occasionally remain unexploited. We consider such a lost-treasure effect as an additional cost of rent seeking and examine how the expected value of such a lost rent varies with changes in the parameters of the problem.
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U2 - 10.1007/s11127-005-2056-0
DO - 10.1007/s11127-005-2056-0
M3 - Article
AN - SCOPUS:26444452600
SN - 0048-5829
VL - 124
SP - 411
EP - 422
JO - Public Choice
JF - Public Choice
IS - 3-4
ER -