Article thumbnail

Governing Interest Groups and Rent Dissipation

By Gil S. Epstein and Yosef Mealem


In a contest group - specific public goods we consider the effect that managing an interest group has on the rent dissipation and the total expected payoffs of the contest. While in the first group, there is a central planner determining its members’ expenditure in the contest, in the second group there are two different possibilities: either all the members are governed by a central planner or they aren’t. We consider both types of contests: an all pay auction and a Logit contest success function. We show that while governing an interest group decreases free-riding, it may as well decrease the rent dissipation; at the same time the expected payoffs from the groups may also decrease.

OAI identifier:

To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.

Suggested articles


  1. (1995). A general model of rent seeking for public goods,
  2. (2001). Bidding for a group-specific public-good prize,
  3. (2004). Bidding in hierarchies,
  4. (1997). Comparative statics of contests and rent seeking games,
  5. (1980). Efficient Rent-Seeking. In
  6. (2006). Effort and performance in public policy contests,
  7. (2009). Efforts in Two-Sided Contests” Public Choice, forthcoming Gradstein,
  8. (2007). Endogenous Public Policy and Contests.
  9. (2002). Investment in the Absence of Property Rights; the Role of Incumbency Advantages.
  10. (1994). Modelling rent-seeking contests,
  11. (1999). Orchestrating rent seeking contests,
  12. (2003). Political culture and monopoly price determination, Social Choice and Welfare,
  13. (1989). Politically Contestable Rents and Transfers”,
  14. (1998). Rent Dissipation and efficiency in a contest with asymmetric valuation,
  15. (1992). Rent-Seeking Firms and Consumers: An Equilibrium Analysis.
  16. (1999). Rent-seeking firms, consumer groups, and the social costs of monopoly,
  17. (1993). Rigging the Lobbying Process: An Application of the All-Pay Auction.
  18. (1997). Risk aversion in rent seeking and rent augmenting games,
  19. (2001). Special Interest Politics.
  20. (1991). Strategic Buyers and the Social Cost of Monopoly.
  21. (1999). Uncertain pre-assigned non-contestable and contestable rents,