A Note on Rent Dissipation in Lottery Contests
14 Pages Posted: 25 Mar 2018
Date Written: February 4, 2018
Rent dissipation measures the social loss in rent-seeking contests and therefore is the main source of interest in the rent-seeking literature. We derive narrow bounds for the amount of rent dissipation in a sequential lottery contest within players and show that the rent dissipation is larger than in the corresponding simultaneous contest. Sequential moves in contests therefore increase the social loss from rent-seeking behavior.
Keywords: Lottery Contests, Sequential Contests, Dissipation in Contests
JEL Classification: C72, D43, L13
Suggested Citation: Suggested Citation