Rent-seeking contest with two forms of sabotaging efforts

Yizhaq Minchuk

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

We study standard rent-seeking contests in which there are two forms of sabotaging. This study is conducted for a symmetric model of two contestants with complete information, when the first form of sabotaging negatively affects the probability of winning the contest while the second form increases the marginal cost of the standard rent-seeking effort. We show that only those forms of sabotage that increase the marginal cost of the rent-seeking effort affect the productive rent-seeking effort. Thus, from a designer's point of view, if monitoring is feasible, the only form of sabotaging effort that should be monitored is the second one.

Original languageEnglish
Pages (from-to)1413-1419
Number of pages7
JournalEconomics Bulletin
Volume40
Issue number2
StatePublished - 1 Jan 2020
Externally publishedYes

ASJC Scopus subject areas

  • General Economics, Econometrics and Finance

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