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Persuasion as a Contest

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Abstract

We examine how the probability of persuading an audience depends on resources expended by contending parties. We use a Bayesian approach whereby the audience makes inferences solely based on the evidence produced by the constants. We find conditions that yield the well-known additive contest success functions, including the logit function. We also find conditions that produce a generalized "difference" functional form. In all cases, there are three main determinants of audience choice: (i) the truth and other objective parameters of the environment; (ii) the biases of the audience; and (iii) the resources expended by the interested parties.

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File URL: http://www.deakin.edu.au/buslaw/aef/workingpapers/papers/2008_07eco.pdf
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Bibliographic Info

Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number 2008_07.

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Length: 32 pages
Date of creation: 16 Oct 2008
Date of revision:
Handle: RePEc:dkn:econwp:eco_2008_07

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Keywords: rent-seeking; advertising; litigation; political campaigning; property rights;

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References

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Citations

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Cited by:
  1. Hao Jia & Stergios Skaperdas & Samarth Vaidya, 2012. "Contest Functions: Theoretical Foundations and Issues in Estimation," Working Papers 111214, University of California-Irvine, Department of Economics.
  2. Gil S. Epstein & Yosef Mealem & Shmuel Nitzan, 2012. "The Efficacy and Efforts of Interest Groups in Post Elections Policy Formation," CESifo Working Paper Series 4009, CESifo Group Munich.
  3. Gerry Antioch, 2013. "Persuasion is now 30 per cent of US GDP," Economic Roundup, Treasury, Australian Government, issue 1, pages 1-10, April.
  4. Enrico Spolaore, 2007. "Civil Conflict and Secessions," Discussion Papers Series, Department of Economics, Tufts University 0705, Department of Economics, Tufts University.
  5. Luis Corchon & Matthias Dahm, 2009. "Welfare maximizing contest success functions when the planner cannot commit," Economics Working Papers we097343, Universidad Carlos III, Departamento de Economía.
  6. Kai Konrad & Dan Kovenock, 2012. "Introduction," Economic Theory, Springer, vol. 51(2), pages 241-245, October.
  7. Denter, Philipp, 2013. "A theory of communication in political campaigns," Economics Working Paper Series 1302, University of St. Gallen, School of Economics and Political Science.
  8. Martin Gregor, 2011. "Corporate lobbying: A review of the recent literature," Working Papers IES 2011/32, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Nov 2011.
  9. Hao Jia & Stergios Skaperdas, 2011. "Technologies of Conflict," Working Papers 101111, University of California-Irvine, Department of Economics.

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