RT Monograph
SR 00
A1 Schroyen, Fred
A1 Treich, Nicolas
T1 The Power of Money: Wealth Effects in Contest
YR 2016
FD 2016-09
VO 16-699
SP 48
K1 Conflict
K1 contest
K1 rent-seeking
K1 wealth
K1 risk aversion
K1 lobbying
K1 power
K1 redistribution
AB The relationship between wealth and power has long been debated. Nevertheless, this relationship has been rarely studied in a strategic game. In this paper, we study wealth effects in a strategic contest game. Two opposing effects arise: wealth reduces the marginal cost of effort but it also reduces the marginal benefit of winning the contest. We consider three types of contests which vary depending on whether rents and efforts are commensurable with wealth. Our theoretical analysis shows that the effects of wealth are strongly "contestdependent". It thus does not support general claims that the rich lobby more or that low economic growth and wealth inequality spur conflicts.
T2 TSE Working Paper
PB TSE Working Paper
AV Published
LK https://publications.ut-capitole.fr/id/eprint/22381/
UL http://tse-fr.eu/pub/30893