Delegation with multiple instruments in a rent-seeking contest

Lambert Schoonbeek*

*Corresponding author for this work

    Research output: Contribution to journalArticleAcademicpeer-review

    7 Citations (Scopus)

    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 languageEnglish
    Pages (from-to)453-464
    Number of pages12
    JournalPublic Choice
    Volume131
    Issue number3-4
    DOIs
    Publication statusPublished - Jun-2007

    Keywords

    • contest
    • delegation
    • multiple instruments

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