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 a1, 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
Original language | English |
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Pages (from-to) | 99-104 |
Journal | Public Choice |
Volume | 159 |
Issue number | 1 |
Early online date | 10 Sept 2012 |
DOIs | |
Publication status | Published - Apr 2014 |