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Applied Economics Letters Volume 9, 2002 - Issue 1
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Original Articles

A delegated agent in a winner-takes-all contest

Lambert Schoonbeek
Pages 21-23 | Published online: 06 Oct 2010
 
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Abstract

A standard winner-takes-all rent-seeking contest with a principal-agent relationship is extended. One of the two players offers a contract to an agent to act as a delegate on his behalf. The wage offered to the agent is deliberately chosen. The equilibrium of the extended contest is characterized.

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