Sequential rent seeking ∗

The Size of Rent-seeking Activity in Iran's Foreign Trade Sector: An Application of the DSGE Approach

Rent-seeking in the trade sector is an outcome of restrictions imposed on tariffs and import quotas by a government. In an effort to acquire more privilege in foreign trade, labor allocates a part of its time-effort to rent-seeking activity, while cutting down on production work. Given the importance of rent-seeking activity due to restrictions imposed by the government in the Iranian economy, ...

An experiment on sequential rent-seeking

In an experiment on sequential rent seeking, we find that the theoretically predicted first-mover advantage does not exist empirically. Rather, a second-mover advantage can be observed. Though the subgame perfect equilibrium can not prevail in experiment, individual behavior is highly reasonable nevertheless, such that subjects appear to play a reduced form of the original game. We also observe...

What Is The Driving Force Behind Industrial Development In Iran? Rent Seeking And Labor Exploitation As The Driving Force Of Industrial Growth

The Opportunity Costs of Rent Seeking

The costs of rent seeking exceed traditional measures when opportunity cost is considered. When the quantity of resources consumed by rent seeking is large, rent seeking draws consumer surplus out of alternative resource employments. The costs of rent seeking differ in partial and general equilibrium frameworks; Tullock (1989) recognizes this but incorrectly argues that rent seeking costs are t...

A Theory of Rent Seeking with Informational Foundations

I develop a model of rent seeking with informational foundations and an arbitrary number of rent seekers, and I compare the results with Tullock’s (1980) classic model where the influence activities are “blackboxed.” Given the microfoundations, the welfare consequences of rent seeking can be studied. In particular, I show that competition among rent seekers can be socially beneficial, since the...