Gordon Tullock (1922–2014)
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Rent-Seeking Contests with Incomplete Information
Rent-Seeking Contests with Incomplete Information Mark Fey∗ Department of Political Science University of Rochester September, 2007 Abstract We consider rent-seeking contests with two players that each have private information about their own cost of effort. We consider both discrete and continuous distributions of costs and give results for each case, focusing on existence of equilibria. JEL Classification: D72; C72 Keywords: rent-seeking, contests, conflict, private information, equi- librium existence ∗Harkness Hall, University of Rochester, Rochester, NY, 14618. Office: 585-275-5810. Fax: 585-271-1616. Email: [email protected]. 1 Introduction A rent-seeking contest is a situation in which players expend costly effort to gain a reward. Many conflict situations can be described by rent-seeking contests, including political campaigns, patent races, war fighting, lobbying efforts, labor market competition, legal battles, and professional sports. The reward in a rent-seeking contest may be indivisible, such as electoral office or a patent right, or it may be divisible, such as market share or vote share. In the former case, expending more effort increases the probability that a player will win the prize. In the latter case, expending more effort increases the share of the prize. An important vehicle for investigating the logic of rent-seeking contests is the model of Tullock (1980). This work has spawned a large literature, some of which is surveyed in Lockard and Tullock (2001) and Corch´on (2007). In this paper, we contribute to this literature by developing a model of rent- seeking contests in which players have incomplete information about the cost of effort to other players. -
Buchanan, James and Tullock, Gordon. the Calculus of Consent
BOOKS AUTHORED AND CO-AUTHORED Tullock, Gordon. The Logic of the Law (New York: Basic (page 1: 1965-1980) Books Inc., 1971). University Press of America, 1988. Buchanan, James and Tullock, Gordon. The Calculus of Tullock, Gordon. The Social Dilemma: The Economics of Consent: Logical Foundations of a Constitutional War and Revolution (Blacksburg, VA: Center for Study Democracy (Ann Arbor: University of Michigan Press, of Public Choice, 1974). 1962). Paperback, 1965. Japanese Translation, 1979. Spanish Translation, 1980. Slovenian Translation, March 1997. Japanese Translation, 1980. Russian Translation, 2001 McKenzie, Richard B. and Tullock, Gordon. The New World Chinese Translation (by Yi Xianrong), forthcoming of Economics: Explorations into the Human Korean Translation (by Sooyoun Hwang), Forward Experience (Homewood, IL: Richard D. Irwin, Inc., French Translation, forthcoming 1975). 2nd Edition, 1978. 3rd Edition, 1980. 4th Edition, 1984. Chapter 4, “Competing monies,” (Irwin, 1984, Tullock, Gordon. The Politics of Bureaucracy (Washington 4th ed. Pp. 52-65). 5th Edition, 1989. Revised Aug. D.C.: Public Affairs Press, 1965). Paperback, 1975. 1994 and retitled: The Best of the New World of University Press of America, 1987. Economics… and Then Some. 5th Edition reissued, 1994, The New World of Economics. McGraw-Hill). Tullock, Gordon. The Organization of Inquiry (Durham, NC: Duke University Press, 1966). University Press of Spanish Translation, 1980. America, 1987. Japanese Translation, 1981. German Translation, 1984. Tullock, Gordon. Toward a Mathematics of Politics (Ann Chinese Translation, 1992. Arbor: University of Michigan Press, 1967). Paperback, 1972. [Reviewed by Kenneth J. Arrow. McKenzie, Richard B. and Tullock, Gordon. Modern Political “Tullock and an Existence Theorem,” Public Choice, Economy: An Introduction to Economics (New York: VI: 105-11.] McGraw-Hill Book Company, 1978). -
The Selected Works of Gordon Tullock, Vol. 3 the Organization of Inquiry [1966]
The Online Library of Liberty A Project Of Liberty Fund, Inc. Gordon Tullock, The Selected Works of Gordon Tullock, vol. 3 The Organization of Inquiry [1966] The Online Library Of Liberty This E-Book (PDF format) is published by Liberty Fund, Inc., a private, non-profit, educational foundation established in 1960 to encourage study of the ideal of a society of free and responsible individuals. 2010 was the 50th anniversary year of the founding of Liberty Fund. It is part of the Online Library of Liberty web site http://oll.libertyfund.org, which was established in 2004 in order to further the educational goals of Liberty Fund, Inc. To find out more about the author or title, to use the site's powerful search engine, to see other titles in other formats (HTML, facsimile PDF), or to make use of the hundreds of essays, educational aids, and study guides, please visit the OLL web site. This title is also part of the Portable Library of Liberty DVD which contains over 1,000 books and quotes about liberty and power, and is available free of charge upon request. The cuneiform inscription that appears in the logo and serves as a design element in all Liberty Fund books and web sites is the earliest-known written appearance of the word “freedom” (amagi), or “liberty.” It is taken from a clay document written about 2300 B.C. in the Sumerian city-state of Lagash, in present day Iraq. To find out more about Liberty Fund, Inc., or the Online Library of Liberty Project, please contact the Director at [email protected]. -
The Language of Neoliberal Education Ed
Letnik XXIX, številka 1–2, 2018 Revija za teorijo in raziskave vzgoje in izobraževanja Šolsko polje The Language of Neoliberal Education ed. Mitja Sardoč Šolsko polje Revija za teorijo in raziskave vzgoje in izobraževanja Letnik XXIX, številka 1–2, 2018 Šolsko polje je mednarodna revija za teorijo ter raziskave vzgoje in izobraževanja z mednarodnim uredniškim odbor om. Objavlja znanstvene in strokovne članke s širšega področja vzgoje in izobraževanja ter edukacij- skih raziskav (filozofija vzgoje, sociologija izobraževanja, uporabna epistemologija, razvojna psihologija, -pe dagogika, andragogika, pedagoška metodologija itd.), pregledne članke z omenjenih področij ter recenzije tako domačih kot tujih monografij s področja vzgoje in izobraževanja. Revija izhaja trikrat letno. Izdaja joSlo - vensko društvo raziskovalcev šolskega polja. Poglavitni namen revije je prispevati k razvoju edukacijskih ved in in- terdisciplinarnemu pristopu k teoretičnim in praktičnim vprašanjem vzgoje in izobraževanja. V tem okviru revija posebno pozornost namenja razvijanju slovenske znanstvene in strokovne terminologije ter konceptov na področju vzgoje in izobraževanja ter raziskovalnim paradigmam s področja edukacijskih raziskav v okvi- ru družboslovno-humanističnih ved. Uredništvo: Valerija Vendramin, Zdenko Kodelja, Darko Štrajn, Alenka Gril, Igor Ž. Žagar, Eva Klemenčič in Mitja Sardoč (vsi: Pedagoški inštitut, Ljubljana) Glavni urednik: Marjan Šimenc (Pedagoški inštitut, Ljubljana) Odgovorni urednik: Mitja Sardoč (Pedagoški inštitut, Ljubljana) Uredniški -
GEORGE J. STIGLER Graduate School of Business, University of Chicago, 1101 East 58Th Street, Chicago, Ill
THE PROCESS AND PROGRESS OF ECONOMICS Nobel Memorial Lecture, 8 December, 1982 by GEORGE J. STIGLER Graduate School of Business, University of Chicago, 1101 East 58th Street, Chicago, Ill. 60637, USA In the work on the economics of information which I began twenty some years ago, I started with an example: how does one find the seller of automobiles who is offering a given model at the lowest price? Does it pay to search more, the more frequently one purchases an automobile, and does it ever pay to search out a large number of potential sellers? The study of the search for trading partners and prices and qualities has now been deepened and widened by the work of scores of skilled economic theorists. I propose on this occasion to address the same kinds of questions to an entirely different market: the market for new ideas in economic science. Most economists enter this market in new ideas, let me emphasize, in order to obtain ideas and methods for the applications they are making of economics to the thousand problems with which they are occupied: these economists are not the suppliers of new ideas but only demanders. Their problem is comparable to that of the automobile buyer: to find a reliable vehicle. Indeed, they usually end up by buying a used, and therefore tested, idea. Those economists who seek to engage in research on the new ideas of the science - to refute or confirm or develop or displace them - are in a sense both buyers and sellers of new ideas. They seek to develop new ideas and persuade the science to accept them, but they also are following clues and promises and explorations in the current or preceding ideas of the science. -
Hayek's Relevance: a Comment on Richard A. Posner's
HAYEK’S RELEVANCE: A COMMENT ON RICHARD A. POSNER’S, HAYEK, LAW, AND COGNITION Donald J. Boudreaux* Frankness demands that I open my comment on Richard Posner’s essay1 on F.A. Hayek by revealing that I blog at Café Hayek2 and that the wall-hanging displayed most prominently in my office is a photograph of Hayek. I have long considered myself to be not an Austrian economist, not a Chicagoan, not a Public Choicer, not an anything—except a Hayekian. So much of my vi- sion of reality, of economics, and of law is influenced by Hayek’s works that I cannot imagine how I would see the world had I not encountered Hayek as an undergraduate economics student. I do not always agree with Hayek. I don’t share, for exam- ple, his skepticism of flexible exchange rates. But my world view— my weltanschauung—is solidly Hayekian. * Chairman and Professor, Department of Economics, George Mason University. B.A. Nicholls State University, Ph.D. Auburn University, J.D. University of Virginia. I thank Karol Boudreaux for very useful comments on an earlier draft. 1 Richard A. Posner, Hayek, Law, and Cognition, 1 NYU J. L. & LIBERTY 147 (2005). 2 http://www.cafehayek.com (last visited July 26, 2006). 157 158 NYU Journal of Law & Liberty [Vol. 2:157 I have also long admired Judge Posner’s work. (Indeed, I regard Posner’s Economic Analysis of Law3 as an indispensable resource.) Like so many other people, I can only admire—usually with my jaw to the ground—Posner’s vast range of knowledge, his genius, and his ability to spit out fascinating insights much like I imagine Vesuvius spitting out lava. -
From 'What New Political Economy Is' to 'Why Is
FROM ‘WHAT NEW POLITICAL ECONOMY IS’ TO ‘WHY IS EVERYTHING NEW POLITICAL ECONOMY?’ Rafael Galvão de Almeida Federal University of Minas Gerais Abstract: In this paper I aim to try to explore the definition that New Political Economy (NPE) is the economic study of politics, with a macroeconomic focus. It emerged from the influences mainly from the criticism of theory of economic policy, political business cycle research, public choice theory and new institutional economics. Due to its ample nature, different economists have different definitions of what NPE is, and their definitions may clash against each other. This article aims to be a contribution to dissipate this confusion. JEL Codes: B22; B25; D7. Keywords: political economy; new political economy; public choice; new institutional economics; political business cycles Área 1 - História Econômica, do Pensamento Econômico e Demografia Histórica 1 From ‘what new political economy is’ to ‘why is everything new political economy?’ 1. Introduction “New Political Economy” (NPE) is, in its simplest definition, the economic study of politics. The term is used, for example, by Sayer (1999; 2000), Gamble (1995), Besley (2007) and Screpanti and Zamagni (2003). It is also referred to by other similar names, such as “political economics” (Persson, Tabellini, 2000), “political macroeconomics” (Snowdon, Vane, 2005; Gärtner, 2000), “macro political economy” (Lohmann, 2006), “positive political economy” (Alt, Shepsle, 1990) or just “political economy” (Drazen, 2000; Hibbs, Fassbender, 1981; Weingast and Wittman, 2006), and, just as its semi-synonymic predecessor term “political economy”, NPE can mean different things to different writers1. It is important to single out these differences from the NPE I intend to present. -
The New Federalist
The New Federalist Gordon Tullock adapted for Canadian readers by Filip Palda The Fraser Institute Copyright © 1994 by The Fraser Institute. All rights reserved. No part of this book may be reproduced in any manner whatsoever without written permission except in the case of brief quotations embodied in critical articles and reviews. The author of this book has worked independently and opinions expressed by him, therefore, are his own, and do not necessarily reflect the opinions of the members or the trustees of The Fraser Institute. Canadian Cataloguing in Publication Data Tullock, Gordon. The new federalist Includes bibliographical references. ISBN 0-88975-164-1 1. Decentralization in government—Canada. 2. Fed- eral-provincial relations—Canada. 3. Federal govern- ment— Canada. 4. Social choice—Canada. I. Palda, Filip (K. Filip). II. Fraser Institute (Vancouver, B.C.). III. Title. JS113.T84 1994 354.71’07’3 C94-910080-3 www.fraserinstitute.org Contents Foreword ..................... vii Preface ...................... xv Bibliographic Note ................. xix Acknowledgements ................ xxi Chapter 1: Introduction ................1 Chapter 2: The Sunshine Mountain Ridge Homeowners’ Association and Other Villages ...... 9 Chapter 3: Why Do We Have Some Things Done by Government and Which Governments Should Do Them? ............17 Chapter 4: “Sociological” Federalism as a Way of Reducing Ethnic and Religious Tension ....... 39 Chapter 5: Democracy As It Really Is ......... 53 Chapter 6: A Bouquet of Governments ......... 61 Chapter 7: Some Myths About Efficiency ........ 77 Chapter 8: Intergovernmental Bargaining and Other Difficulties ................99 Chapter 9: Technical Problems ........... 111 Chapter 10: Peace and Prosperity: How To Get Them ................. 133 www.fraserinstitute.org www.fraserinstitute.org Foreword ORDON TULLOCK IS A FOUNDER of the intellectual movement Gknown as public choice. -
Control of Finance As a Prerequisite for Successful Monetary Policy: a Reinterpretation of Henry Simons's “Rules Versus Auth
Working Paper No. 713 Control of Finance as a Prerequisite for Successful Monetary Policy: A Reinterpretation of Henry Simons’s “Rules versus Authorities in Monetary Policy” by Thorvald Grung Moe* Norges Bank Levy Economics Institute of Bard College April 2012 * Thorvald Grung Moe is a senior adviser in the Financial Stability wing of Norges Bank (the central bank of Norway) and a visiting scholar at the Levy Economics Institute. The Levy Economics Institute Working Paper Collection presents research in progress by Levy Institute scholars and conference participants. The purpose of the series is to disseminate ideas to and elicit comments from academics and professionals. Levy Economics Institute of Bard College, founded in 1986, is a nonprofit, nonpartisan, independently funded research organization devoted to public service. Through scholarship and economic research it generates viable, effective public policy responses to important economic problems that profoundly affect the quality of life in the United States and abroad. Levy Economics Institute P.O. Box 5000 Annandale-on-Hudson, NY 12504-5000 http://www.levyinstitute.org Copyright © Levy Economics Institute 2012 All rights reserved ISSN 1547-366X ABSTRACT Henry Simons’s 1936 article “Rules versus Authorities in Monetary Policy” is a classical reference in the literature on central bank independence and rule-based policy. A closer reading of the article reveals a more nuanced policy prescription, with significant emphasis on the need to control short-term borrowing; bank credit is seen as highly unstable, and price level controls, in Simons’s view, are not be possible without limiting banks’ ability to create money by extending loans. -
Keynes, the Keynesians and Monetarism
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Congdon, Tim Book — Published Version Keynes, the Keynesians and Monetarism Provided in Cooperation with: Edward Elgar Publishing Suggested Citation: Congdon, Tim (2007) : Keynes, the Keynesians and Monetarism, ISBN 978-1-84720-139-3, Edward Elgar Publishing, Cheltenham, http://dx.doi.org/10.4337/9781847206923 This Version is available at: http://hdl.handle.net/10419/182382 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by-nc-nd/3.0/legalcode www.econstor.eu © Tim Congdon, 2007 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. -
The Economic Thought of Henry Calvert Simons
The Economic Thought of Henry Calvert Simons Drawing on years of research, Gerald Steele delves into the diverse ideas of Henry Simons, a neglected economist whose work in the 1930s on monetary and financial instability is extremely relevant to today’s debates about com- mercial bank credit, the interdependence of fiscal and monetary policy, and financial regulation. Steele describes the emergence of the first Chicago School of economics and its distinctive difference to the School subsequently associated with the Monetarism of Milton Friedman, and shows how Simons provides the basis for what is now referred to as ‘the fiscal theory of the price level’ and how this differs from the monetarist attempt to control prices by controlling the supply of broad money. This book will be of interest to advanced students and researchers of the history of economic thought, economic history, macroeconomics and bank- ing and finance. G.R. Steele is Reader in Economics at Lancaster University. His research interests include the economics and political philosophy of Friedrich Hayek, and he has pursued a general inquiry into the development of ideas relating to problems of a money economy. In 2007, he delivered the F.A. Hayek Memorial Lecture, Austrian Scholars Conference, Mises Institute. In 2010, he was Visiting Professor at the Univer- sity of Economics, Prague, when he delivered the František Čuhel Memorial Lecture, Conference on Political Economy, at the Cevro Institute. Routledge Studies in the History of Economics For a full list of titles in this -
The Midway and Beyond: Recent Work on Economics at Chicago Douglas A
The Midway and Beyond: Recent Work on Economics at Chicago Douglas A. Irwin Since its founding in 1892, the University of Chicago has been home to some of the world’s leading economists.1 Many of its faculty members have been an intellectual force in the economics profession and some have played a prominent role in public policy debates over the past half-cen- tury.2 Because of their impact on the profession and inuence in policy Correspondence may be addressed to: Douglas Irwin, Department of Economics, Dartmouth College, Hanover, NH 03755; email: [email protected]. I am grateful to Dan Ham- mond, Steve Medema, David Mitch, Randy Kroszner, and Roy Weintraub for very helpful com- ments and advice; all errors, interpretations, and misinterpretations are solely my own. Disclo- sure: I was on the faculty of the then Graduate School of Business at the University of Chicago in the 1990s and a visiting professor at the Booth School of Business in the fall of 2017. 1. To take a crude measure, nearly a dozen economists who spent most of their career at Chicago have won the Nobel Prize, or, more accurately, the Sveriges Riksbank Prize in Eco- nomic Sciences in Memory of Alfred Nobel. The list includes Milton Friedman (1976), Theo- dore W. Schultz (1979), George J. Stigler (1982), Merton H. Miller (1990), Ronald H. Coase (1991), Gary S. Becker (1992), Robert W. Fogel (1993), Robert E. Lucas, Jr. (1995), James J. Heckman (2000), Eugene F. Fama and Lars Peter Hansen (2013), and Richard H. Thaler (2017). This list excludes Friedrich Hayek, who did his prize work at the London School of Economics and only spent a dozen years at Chicago.