1989/03/01 by Arye L. Hillman, John G. Riley · 4 citations
Social Sciences · Decision Sciences · Economics, Econometrics and Finance · #Experimental Behavioral Economics Studies #Auction Theory and Applications #Economic Policies and Impacts
paper · doi:10.1111/j.1468-0343.1989.tb00003.x
openalex publication_date 1989/03/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/11
A rent or transfer is politically contestable when policy decisions are subject to influence by potential beneficiaries and losers. This paper studies contestablility of rents and transfers when contenders place different valuations on the politically allocated prize. Asymmetric valuation inhibits participation by low‐valuation contenders. The model explains the phenomena of small numbers of active participants in contests to exercise political influence and low lobbying and other influence‐seeking outlays relative to the value of politically allocated prizes.