Two-stage group rent-seeking with negatively interdependent preferences;

摘要

The purpose of this paper is to compare the rate of rent dissipation in a group rent-seeking contest in which rent seeking activities take place in two stages with those of a one-stage individual contest. Specifically, the effect of the extension by introducing rent-seekers with negatively interdependent preferences is analyzed. Focusing on the relationship between contest-structure and preference-type, we find that rent dissipation given absolute, as opposed to relative payoff maximization, is lower in a two-stage contest than in a one-stage contest. Given players with negatively interdependent preferences, we find the reverse.