Returns to effort in rent-seeking games

B-Tier
Journal: Public Choice
Year: 2014
Volume: 159
Issue: 1
Pages: 99-104

Authors (2)

Giuseppe Dari-Mattiacci (not in RePEc) Francesco Parisi (Alma Mater Studiorum - Univers...)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In the traditional formulation of rent-seeking games, increasing returns to effort are characterized by an exponent r>1. However, when the value of the rent is normalized to 1, the players’ effort levels A and B will typically be less than 1. Thus, when A>1 and r>1, the value of A r decreases as r increases, contradicting the interpretation of r>1 as representing increasing returns to effort. This apparent defect in the mathematization of the problem seems to suggest that a different interpretation of r is required whenever A>1, upsetting the uniformity and elegance of the model. In this short note, we demonstrate that the perceived problem is illusory, and that the usual interpretation of r is satisfactory for all values of A. Copyright Springer Science+Business Media New York 2014

Technical Details

RePEc Handle
repec:kap:pubcho:v:159:y:2014:i:1:p:99-104
Journal Field
Public
Author Count
2
Added to Database
2026-01-25