Firm Size, Economic Situation and Influence Activities

Arbeitspapier

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: SFB/TR 15 Discussion Paper ; No. 167

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: economic situation ; firm size ; influence activities ; politicking ; rent-seeking

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Kräkel, Matthias
• Ereignis: Veröffentlichung
• (wer): Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
• (wo): München
• (wann): 2006

Weitere Informationen

• DOI: doi:10.5282/ubm/epub.13384
• Handle: http://hdl.handle.net/10419/93840
• URN: urn:nbn:de:bvb:19-epub-13384-2
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ