Productive and Unproductive Competition: A Unified Framework

Alice Guerra, Barbara Luppi, Francesco Parisi

    Research output: Working paperResearch

    Abstract

    Conventional theories of competition classify contests as being either “productive,” when the competitive efforts generate a surplus for society, or “unproductive,” when competition generates no social surplus and merely distributes already existing resources. These two discrete categories of competition create a division of real-world situations into analytical categories that fails to recognize the entire spectrum of competitive activities. Taking the existing models of productive and unproductive competition as benchmark idealizations, this paper explores the relationship between the privately and socially optimal levels of competition in the full range of intermediate cases, as well as in the extremum cases of destructive and super-productive competition.
    Original languageEnglish
    Place of PublicationMinneapolis, MN
    PublisherUniversity of Minnesota Press
    Number of pages21
    DOIs
    Publication statusPublished - 4 May 2016
    SeriesMinnesota Legal Studies Research Paper
    Number14-23

    Bibliographical note

    Previously circulated under the title "Dissipation Through Competition" (2014)

    Keywords

    • Contests
    • Rent seeking
    • Unproductive competition,
    • Productive competition
    • Patent races

    Cite this

    Guerra, A., Luppi, B., & Parisi, F. (2016). Productive and Unproductive Competition: A Unified Framework. Minneapolis, MN: University of Minnesota Press. Minnesota Legal Studies Research Paper, No. 14-23 https://doi.org/10.2139/ssrn.2433607