1 Rent - Seeking and Quota Regulation of a Renewable Resource
نویسندگان
چکیده
The paper deals with rent-seeking behaviour among agents competing for future shares of a common renewable natural resource. Rent-seeking might become profitable when the agents expect that the distribution of the natural resource in future periods will be dependent on the agents’ extraction of the resource in the past, even though high exploitation might reduce the stock that future individual quotas will be based upon. Whether aggressive rentseeking behaviour by one agent will encourage other agents to rent-seek more, however, is generally found to be ambiguous. JEL Classification: Q2, D7, C7.
منابع مشابه
Issn: 1466-0814 Rent-seeking and Quota Regulation of a Renewable Resource
The paper deals with rent-seeking behaviour among agents competing for future shares of a common renewable natural resource. Rent-seeking might become profitable when the agents expect that the distribution of the natural resource in future periods will be dependent on the agents’ extraction of the resource in the past, even though high exploitation might reduce the stock that future individual...
متن کاملDissipation of contestable rents by small numbers of contenders
The theory of rent seeking with its origins in the observations of Gordon Tullock (1967) or to use Jagdish Bhagwati's (1982) proposed term, the theory of directly unproductive profit-seeking activities is concerned with the potentially adverse effects on resource allocation of incentives to capture and defend artificially-contrived rents and transfers. The scope for social loss proposed by the ...
متن کاملThe 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, ...
متن کاملLobbying, Trade and Renewable Resource Harvesting
Lobbying, Trade and Renewable Resource Harvesting Richard Damania and E. Barbier The over-exploitation of renewable resources has intensified international concerns over the management of these resources. This has prompted calls for the use of international policy interventions such as trade sanctions and contingent transfers, to encourage sustainable resource management practices in these coun...
متن کاملOn the Allocative Effects of Rent Seeking
We consider the effects of rent-seeking activities on resource allocation. Before rent-seeking activities take place, there are prior probabilities that an object will be given to one of several agents. The posterior probability depends on prior probabilities and the expenses incurred by all agents. In the case of two agents who equally value the object, prior and posterior probabilities coinci...
متن کامل