English, Article, Journal or magazine article edition: Firm Size, Economic Situation and Influence Activities Matthias Kräkel

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Bookmark: http://trove.nla.gov.au/version/52805
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Firm Size, Economic Situation and Influence Activities
Author
  • Matthias Kräkel
Physical Description
  • preprint
Notes
  • RePEc:trf:wpaper:167
  • RePEc:bon:bonedp:bgse16_2006
  • This paper discusses the optimal firm size in the presence of influence activities, and the level of individual rent-seeking dependent on the economic situation of the firm. Since firm size has a discouraging effect on the level of individual rent-seeking but also a quantity effect as the number of rent-seekers increases, the interplay of both effects determines whether the employer chooses an inefficiently small or large firm size. In the given setting, a bad economic situation leads to both a higher probability of a substantial loss and a reduction of productivity. The productivity effect and the two other effects together determine the optimal level of individual rent-seeking.
  • economic situation, firm size, influence activities, politicking, rent-seeking
  • RePEc:iza:izadps:dp2391
Language
  • English
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