@TechReport{iza:izadps:dp2391,
            	author={Kräkel, Matthias},
            	title={Firm Size, Economic Situation and Influence Activities},
            	year={2006},
	month={Oct},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={2391},
            	url={https://www.iza.org/publications/dp2391},
	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.},
	keywords={economic situation;firm size;influence activities;politicking;rent-seeking},
            }