Risky Rents

Abstract

In this paper, we consider a symmetric contest game in which agents compete to increase their share of a risky rent. We show that a symmetric equilibrium always exists, and that it is unique under constant or decreasing absolute risk aversion. We then exhibit interpretable conditions so that increases in risk and risk aversion decrease equilibrium e§orts in this strategic game

Replaced by

Jean-Daniel Guigou, Bruno Lovat, and Nicolas Treich, “Risky Rents”, Economic Theory Bulletin, vol. 5, n. 2, October 2017, pp. 151–164.

Reference

Jean-Daniel Guigou, Bruno Lovat, and Nicolas Treich, “Risky Rents”, TSE Working Paper, n. 16-710, October 2016.