Tullock contest (1980): N symmetric firms each spend x to win a prize V. Win probability = xʳ / (Σxᵢʳ). At Nash equilibrium: each firm spends x* = V(N−1)rN^(−2) (for r=1: x* = V(N−1)/N²). Total dissipation = N·x* = V·r(N−1)/N.
As N→∞, total rent dissipation → V·r (the entire prize is wasted). This is the "paradox of rent-seeking": the prize's social value is consumed by the competitive spending to obtain it. With r>1 (over-dissipation), multiple equilibria may exist. Real examples: lobbying, litigation, patent races, corrupt procurement.