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Manipulations in Contests

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  • Sela, Aner
  • Cohen, Chen

Abstract

We study the classical Tullock's model of one-stage contests where the probability of winning is a function of the efforts exerted by the contestants. We show that by a simple non-discriminating rule the contest designer is able to manipulate the outcome of the contest such that the probabilities to win are not ordered according to the contestants' abilities.

Suggested Citation

  • Sela, Aner & Cohen, Chen, 2004. "Manipulations in Contests," CEPR Discussion Papers 4344, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4344
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    1. Benny Moldovanu & Aner Sela, 2001. "The Optimal Allocation of Prizes in Contests," American Economic Review, American Economic Association, vol. 91(3), pages 542-558, June.
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    3. Gradstein, Mark & Konrad, Kai A, 1999. "Orchestrating Rent Seeking Contests," Economic Journal, Royal Economic Society, vol. 109(458), pages 536-545, October.
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    5. Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1993. "Rigging the Lobbying Process: An Application of the All-Pay Auction," American Economic Review, American Economic Association, vol. 83(1), pages 289-294, March.
    6. Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1994. "The Solution to the Tullock Rent-Seeking Game When R Is Greater Than 2: Mixed-Strategy Equilibria and Mean Dissipation Rates," Public Choice, Springer, vol. 81(3-4), pages 363-380, December.
    7. Richard L. Fullerton & R. Preston McAfee, 1999. "Auctioning Entry into Tournaments," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 573-605, June.
    8. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    9. Baye, M.R. & Kovenock, D. & De Vries, C.G., 1993. "The Solution to the Tullock Rent-Seeking Game when R > 2: Mixed Strategy Equilibria and Mean Dissipation Rates," Papers 10-93-9, Pennsylvania State - Department of Economics.
    10. Christian Groh & Benny Moldovanu & Aner Sela & Uwe Sunde, 2012. "Optimal seedings in elimination tournaments," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 49(1), pages 59-80, January.
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    Citations

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    Cited by:

    1. Chowdhury, Subhasish M. & Sheremeta, Roman M., 2011. "Multiple equilibria in Tullock contests," Economics Letters, Elsevier, vol. 112(2), pages 216-219, August.
    2. Matros, Alexander, 2012. "Sad-Loser contests," Journal of Mathematical Economics, Elsevier, vol. 48(3), pages 155-162.
    3. Ezra Einy & Ori Haimanko & Diego Moreno & Aner Sela & Benyamin Shitovitz, 2013. "Tullock Contests With Asymmetric Information," Working Papers 1303, Ben-Gurion University of the Negev, Department of Economics.
    4. Cohen, Chen & Sela, Aner, 2008. "Allocation of prizes in asymmetric all-pay auctions," European Journal of Political Economy, Elsevier, vol. 24(1), pages 123-132, March.
    5. Chen Cohen & Roy Darioshi & Shmuel Nitzan, 2023. "Equivalent Modes of Reimbursement in Augmented Contests," Games, MDPI, vol. 14(2), pages 1-6, March.
    6. A. Aiche & E. Einy & O. Haimanko & D. Moreno & A. Sela & B. Shitovitz, 2019. "Information in Tullock contests," Theory and Decision, Springer, vol. 86(3), pages 303-323, May.
    7. Yizhaq Minchuk & Aner Sela, 2021. "Subsidy and Taxation in All-Pay Auctions under Incomplete," Working Papers 2104, Ben-Gurion University of the Negev, Department of Economics.
    8. Subhasish Chowdhury & Roman Sheremeta, 2011. "A generalized Tullock contest," Public Choice, Springer, vol. 147(3), pages 413-420, June.
    9. Yizhaq Minchuk & Aner Sela, 2020. "Contests with insurance," Review of Economic Design, Springer;Society for Economic Design, vol. 24(1), pages 1-22, June.
    10. Aner Sela & Ezra Einy & 0ri Haimanko & Diego Moreno & Avishay Aiche & Benyamin Shitovitz, 2016. "Information Advantage in Common-Value Classic Tullock Contests," Working Papers 1614, Ben-Gurion University of the Negev, Department of Economics.
    11. Alexander Matros & Daniel Armanios, 2009. "Tullock’s contest with reimbursements," Public Choice, Springer, vol. 141(1), pages 49-63, October.
    12. Subhasish M. Chowdhury & Patricia Esteve‐González & Anwesha Mukherjee, 2023. "Heterogeneity, leveling the playing field, and affirmative action in contests," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 924-974, January.
    13. Alex Krumer, 2015. "The Order of Games in a Best-of-Three Contest," Journal of Sports Economics, , vol. 16(2), pages 185-200, February.
    14. de Roos, Nicolas & Matros, Alexander & Smirnov, Vladimir & Valencia, Zehra, 2022. "Choosing the Prize in Contests," Working Papers 2022-04, University of Sydney, School of Economics.
    15. Amegashie, J. Atsu & Kutsoati, Edward, 2007. "(Non)intervention in intra-state conflicts," European Journal of Political Economy, Elsevier, vol. 23(3), pages 754-767, September.
    16. Yizhaq Minchuk, 2021. "Reimbursement as a tool to reduce sabotaging in rent‐seeking contests," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(1), pages 235-238, January.
    17. Cohen, Chen & Darioshi, Roy & Nitzan, Shmuel, 2022. "Optimal favoritism and maximal revenue: A generalized result," European Journal of Political Economy, Elsevier, vol. 73(C).
    18. Alexander Matros & Daniel Armanios, 2007. "Tullock," Working Paper 328, Department of Economics, University of Pittsburgh, revised Sep 2008.
    19. Minchuk, Yizhaq, 2018. "Effect of reimbursement on all-pay auction," Economics Letters, Elsevier, vol. 172(C), pages 28-30.
    20. Liu, Yong & Liu, Shulin, 2019. "Effects of risk aversion on all-pay auction with reimbursement," Economics Letters, Elsevier, vol. 185(C).
    21. Minchuk, Yizhaq & Sela, Aner, 2023. "Subsidy and taxation in all-pay auctions under incomplete information," Games and Economic Behavior, Elsevier, vol. 140(C), pages 99-114.
    22. Amegashie, J. Atsu & Runkel, Marco, 2008. "The Desire for Revenge and the Dynamics of Conflicts," MPRA Paper 6746, University Library of Munich, Germany.
    23. Chung, A., 2024. "Target Setting in Contests with Sabotage," Cambridge Working Papers in Economics 2409, Faculty of Economics, University of Cambridge.
    24. Alexander Matros, 2006. "Sad-Loser Lottery," Working Paper 204, Department of Economics, University of Pittsburgh, revised Dec 2008.
    25. Subhashish Modak Chowdhury & Roman M. Sheremeta, 2009. "A generalized Tullock contest and the existence of multiple equilibria," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 09-08, School of Economics, University of East Anglia, Norwich, UK..

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    More about this item

    Keywords

    Contests; Tullock's models;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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