TULLOCKS RENT-SEEKING CONTEST WITH A MINIMUM EXPENDITURE REQUIREMENT (VOL 93, PG 477, 1997)

We consider a rent-seeking contest of the kind introduced by Tullock ( 1980) in which two players compete for a monopoly rent. We extend the contest by requiring that if a player puts forward an effort, his expe nditures must be larger than or equal to some minimum level. We show t hat, depending on the model parameters, the number of Nash equilibria of the extended model can be zero, one, two or four. Furthermore, it t urns out that the extent of rent dissipation in a Nash equilibrium of the extended model can be larger than, equal to, or smaller than the e xtent of rent dissipation in the unique Nash equilibrium of the origin al model.