THE OLSON RATIO AND INDIRECTLY ENDOGENOUS RENT

Authors
FABELLA RV
Citation
Rv. Fabella, THE OLSON RATIO AND INDIRECTLY ENDOGENOUS RENT, Public choice, 89(3-4), 1996, pp. 325-337
Citations number
16
Categorie Soggetti
Economics,"Political Science
Journal title
Public choice → ACNP
ISSN journal
00485829
Volume
89
Issue
3-4
Year of publication
1996
Pages
325 - 337
Database
ISI
SICI code
0048-5829(1996)89:3-4<325:TORAIE>2.0.ZU;2-8
Abstract
We consider an economy where the rent value depends indirectly on valu e-adding investment of agents (thus indirectly endogenous) and the win -probability is a function of rent seeking spending. We introduce the Olson ratio, characterize it at symmetric Cournot-Nash equilibrium of a perfectly discriminating contest and relate it to the Tullock dissip ation rate. We investigate the possibility of black holes.