We investigate optimal favoritism using identity-contingent prizes in a two-player Tullock model. Besides the usual balance effect, prize allocation has an extra efficiency effect: One additional unit of prize tends to induce more effort, if it is used as the winning prize for the stronger...

We develop a model of contests on networks. Each player is “connected” to a set of contests and exerts a single effort to increase the probability of winning each contest to which she is connected. We characterize equilibria under the Tullock contest success function and explore how behavior...