Linking individual and collective contests through noise level and sharing rules

Pau Balart, Subhasish Chowdhury and Orestis Troumpounis ()
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Pau Balart: Universidad Carlos III de Madrid

No 2015-07, University of East Anglia School of Economics Working Paper Series from School of Economics, University of East Anglia, Norwich, UK.

Abstract: We provide a theoretical link between the two most prominent ways of modelling individual and collective contests as proposed by Tullock (1980) and Nitzan (1991) respectively. By introducing Nitzan's sharing rule as a way of modeling individual contests we obtain a contest success function nesting a standard Tullock contest and a fair lottery. We first provide an equivalence result between the proposed contest and Tullock's contest for the two-player set-up. We then employ this nested contest as a way of introducing noise in multi-player contests when in the Tullock contest a closed form solution for the equilibrium in pure strategies does not exist. We conclude by comparing the proposed contest with the existing ones in the literature.

Keywords: individual contest; collective contest; equivalence (search for similar items in EconPapers)
JEL-codes: C72 D72 D74 (search for similar items in EconPapers)
Date: 2015-11-06
New Economics Papers: this item is included in nep-cdm, nep-gth and nep-mic
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Linking individual and collective contests through noise level and sharing rules (2017)
Working Paper: Linking individual and collective contests through noise level and sharing rules (2015)
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