This paper explains the provision of private rent to powerful members in an organization as an outcome of a contest for power that raises the total contributions to the organization. A necessary condition for a socially efficient contest scheme with reimbursements is characterized.
This paper explains the provision of private rent to powerful members in an organization as an outcome of a contest for power that raises the total contributions to the organization. A necessary condition for a socially efficient contest scheme with reimbursements is characterized. (en)