Abstract : We consider delegation in a rent-seeking contest with two players, where delegates have more instruments at their disposal than the main players. We endogenize both the decision to hire a delegate and the contingent fee offered to the delegates. We characterize the situations when either no, one or two players hire a delegate in equilibrium. We show that the decision to hire a delegate depends in a non-monotone way on the size of the contested prize.
|Place of Publication||Groningen|
|Publisher||University of Groningen, SOM research school|
|Number of pages||18|
|Volume||SOM Research Reports|
|Publication status||Published - 2006|
- multiple instruments.