|Konrad, Kai A. (2012): Dynamic contests and the discouragement effect. In: Revue d'Economie Politique, Vol. 122, No. 2: pp. 233-256|
Considering several main types of dynamic contests (the race, the tug-of-war, elimination contests and iterated incumbency fights) we identify a common pattern: the discouragement effect. This effect explains why the sum of rent-seeking efforts often falls considerably short of the prize that is at stake. It may cause violent conflict in early rounds, but may also lead to long periods of peaceful interaction.
|Keywords:||dynamic contest; discouragement; tournament; repeated fighting|
Economics > Chairs > MPI for Tax Law and Public Finance
|Subjects:||300 Social sciences > 330 Economics|
|Deposited On:||08. Dec 2014 14:08|
|Last Modified:||08. Dec 2014 14:08|