ON THE INCENTIVES TO ESTABLISH AND PLAY POLITICAL RENT-SEEKING GAMES

Legislators will enact programs that encourage rent-seeking only if they can thereby increase their chances of winning election, or of receiving contributions themselves. The paper shows rent-seeking to be electorally robust - both voters and contributors will often avoid a candidate who proposes to eliminate rent-seeking. Important exceptions arise, however, if contributions are more likely to help challengers than incumbents, and if legislators prefer that some firm rather than another receive governmental contracts.