Sabotage in Rent-Seeking Contests
Posted: 25 Feb 2000
This article considers the interaction between two types of effort in lobbying contests: effort that improves the contestant's own performance (standard rent seeking), and effort that reduces particular rivals' performance (sabotage). Due to a positive externality, sabotage is a 'small number' phenomenon. Sabotage may increase lobbying efforts and the dissipation rate in lobbying contests compared to a situation in which sabotage is not feasible.
JEL Classification: D72, D74
Suggested Citation: Suggested Citation