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-monotonic way on the size of the contested prize.
Original language | English |
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Pages (from-to) | 453-464 |
Number of pages | 12 |
Journal | Public Choice |
Volume | 131 |
Issue number | 3-4 |
DOIs | |
Publication status | Published - Jun-2007 |
Keywords
- contest
- delegation
- multiple instruments