Risky Rents

Résumé

We consider a strategic contest game in which risk-averse agents exert efforts to increase their share of a risky rent. We show that a unique symmetric equilibrium always exists under constant or decreasing absolute risk aversion. We also show that agents exert in general less efforts when they are more risk averse or when the rent is more risky.

Mots-clés

Remplace

Jean-Daniel Guigou, Bruno Lovat et Nicolas Treich, « Risky Rents », TSE Working Paper, n° 16-710, octobre 2016.

Référence

Jean-Daniel Guigou, Bruno Lovat et Nicolas Treich, « Risky Rents », Economic Theory Bulletin, vol. 5, n° 2, octobre 2017, p. 151–164.