@techreport{Krakel2006Firm,
abstract = {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.},
author = {Matthias Kr\"{a}kel},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {L2; D2; M2; 330; economic situation; firm size; influence activities; politicking; rent-seeking},
language = {eng},
number = {2006,16},
title = {Firm Size, Economic Situation and Influence Activities},
type = {Bonn econ discussion papers},
url = {http://hdl.handle.net/10419/22961},
year = {2006}
}
