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The symmetric two-player Hirshleifer (1989) contest is shown to admit a unique equilibrium. The support of the equilibrium strategy is finite and includes, in particular, the zero expenditure level. We also establish a lower bound for the cardinality of the support and an upper bound for the...
Persistent link: https://www.econbiz.de/10011969197
We consider a two group contest over a group specific public good where each member of a group has a different benefit from the good. Our model can be interpreted in two ways: Each of the players has a non-linear investment cost in the contest, or alternatively, the returns to effort are...
Persistent link: https://www.econbiz.de/10010336001
We consider a two group contest over a group specific public good comparing two situations: (i) when all players act independently; and (ii) when the players of each group cooperate. This comparison leads us to the conclusion that it is possible for one group to contribute more (and have a...
Persistent link: https://www.econbiz.de/10010336057
This paper studies a large class of imperfectly discriminating contests, referred to as elastic contests, that induce … definite answers regarding the extent of rent dissipation in Tullock contests with intermediate values of the decisiveness …
Persistent link: https://www.econbiz.de/10011282491
results to contests with incomplete informa tion. Two assumptions are imposed on the information structure. First, the players …
Persistent link: https://www.econbiz.de/10010332037
This paper considers all-pay contests in which the relationship between bids and allocation reflects a small amount of …, political lobbying, electoral competition, optimally biased contests, the empirical analysis of rent-seeking, and dynamic … contests. …
Persistent link: https://www.econbiz.de/10011663167
This paper considers all-pay contests in which the relationship between bids and allocations reflects a small amount of … licensing, political lobbying, electoral competition, optimally biased contests, the empirical analysis of rent-seeking, and … dynamic contests. …
Persistent link: https://www.econbiz.de/10011784281
This article considers an asymmetric contest with incomplete information. There are two types of players: informed and uninformed. Each player has a different ability to translate effort into performance in terms of the contest success function. While one player's type is known to both players,...
Persistent link: https://www.econbiz.de/10010336049
A well-known theoretical result in the contest literature is that greater heterogeneity decreases performance of contestants because of the "discouragement effect." Leveling the playing field by favoring weaker contestants through bid-caps and favorable tie-breaking rules can reduce the...
Persistent link: https://www.econbiz.de/10011796520
We analyze binary choice models in communication networks, in which both, the formation of links in the network as well as the action choices are endogenous. We provide a complete characterization of the equilibrium action choices and networks, where agents choose their strategies - actions and...
Persistent link: https://www.econbiz.de/10011663181