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 |
|---|---|
| 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