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We consider a variant of the Tullock rent-seeking contest. Under symmetric information we determine equilibrium strategies and prove their uniqueness. Then, we assume contestants to be privately informed about their costs of effort. We prove existence of a pure-strategy equilibrium and provide a...
Persistent link: https://www.econbiz.de/10008543762
We find the sufficient conditions for the existence of multiple equilibria in Tullock-type contests and show that … asymmetric equilibria may arise even under symmetric prize and cost structures. We also identify contests in the literature where …
Persistent link: https://www.econbiz.de/10010571481
existing contests in the literature. We characterize the equilibria and show that multiple equilibria might exist even under … symmetric prize values. Finally, we introduce and characterize several new contests in which multiple equilibria may arise under …
Persistent link: https://www.econbiz.de/10010571486
We find the sufficient conditions for the existence of multiple equilibria in Tullock-type contests and show that … asymmetric equilibria may arise even under symmetric prize and cost structures. We also identify contests in the literature where …
Persistent link: https://www.econbiz.de/10008642290
Numerous studies suggest that communication may be a universal means to mitigate collective action problems. In this study, we challenge this view and show that the communication structure crucially determines whether communication mitigates or intensifies the problem of collective action. We...
Persistent link: https://www.econbiz.de/10008675292
The heterogeneous effort supply in intergroup contests explains why groups have a manager. However, the objectives of …
Persistent link: https://www.econbiz.de/10010632915
This paper analyzes the ability of group members to cooperate in rent-seeking activities in a context of between-group competition. For this purpose, we develop an infinitely repeated rent-seeking game between two groups of different size. We first investigate Nash reversion strategies to...
Persistent link: https://www.econbiz.de/10008465367
where no contestant would wish to change his choice of contest, results in the allocation of players to contests that … maximizes aggregate equilibrium effort. For a class of oligopoly models that are equivalent to contests, this implies output …
Persistent link: https://www.econbiz.de/10012947451
unequally likely to win each match and the overall contest. This result holds in Tullock contests and all-pay auctions, as well …-ante identical; thus, it challenges the conventional wisdom of optimality of unbiased contests. Our result has also an applied …
Persistent link: https://www.econbiz.de/10012918987
We examine a rent-seeking contest by teams, where team members can sabotage their teammates. In this setting, the effective effort (the effort level discounted by the sabotaged level) determines a team's winning probability and the shares of the winning prize. Thus, coordinating the effective...
Persistent link: https://www.econbiz.de/10013228169