Difference-form group contests
AbstractContests are situations in which a set of agents compete for a valuable object, rent or award. The present paper analyzes difference-form group contests, that is, contests fought among groups and where their probability of victory depends on the difference of their effective efforts. First, we show that the non-existence of pure-strategy equilibria and the monopolization results obtained in previous analysis of difference-form contests rest critically on the assumption of a linear cost of effort. Under exponential costs, we show that pure strategy equilibria exist in a large set of cases and that more than one group can expend positive effort in equilibrium. Second, we show that inequality of valuations of victory within groups hinders their chances of prevailing in the contest. If possible; members may find beneficial to engage in progressive redistribution within their group.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2014/6.
Length: 32 pages
Date of creation: 2014
Date of revision:
Contests; contest success function; inequality; redistribution;
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-03-30 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Corchón, Luis & Dahm, Matthias, 2011.
"Welfare maximizing contest success functions when the planner cannot commit,"
Journal of Mathematical Economics,
Elsevier, vol. 47(3), pages 309-317.
- Corchon, Luis, 2009. "Welfare Maximizing Contest Success Functions when the Planner Cannot Commit," MPRA Paper 18761, University Library of Munich, Germany.
- Corchón, Luis C. & Dahm, Matthias, 2010. "Welfare Maximizing Contest Success Functions when the Planner Cannot Commit," Working Papers 2072/148481, Universitat Rovira i Virgili, Department of Economics.
- 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.
- Lee, Dongryul, 2012. "Weakest-link contests with group-specific public good prizes," European Journal of Political Economy, Elsevier, vol. 28(2), pages 238-248.
- Kolm, Serge-Christophe, 1976. "Unequal inequalities. II," Journal of Economic Theory, Elsevier, vol. 13(1), pages 82-111, August.
- Stergios Skaperdas, 1996.
"Contest success functions (*),"
Springer, vol. 7(2), pages 283-290.
- Leonid Polishchuk & Alexander Tonis, 2013. "Endogenous contest success functions: a mechanism design approach," Economic Theory, Springer, vol. 52(1), pages 271-297, January.
- Nitzan, Shmuel, 1991. " Rent-Seeking with Non-identical Sharing Rules," Public Choice, Springer, vol. 71(1-2), pages 43-50, August.
- Johannes MÃ¼nster & Klaas Staal, 2011. "War with Outsiders Makes Peace Inside," Conflict Management and Peace Science, Peace Science Society (International), vol. 28(2), pages 91-110, April.
- Luis Corchón & Matthias Dahm, 2010.
"Foundations for contest success functions,"
Springer, vol. 43(1), pages 81-98, April.
- Corchón, Luis C. & Dahm, Matthias, 2008. "Foundations for contest success functions," Working Papers 2072/9493, Universitat Rovira i Virgili, Department of Economics.
- Luis Corchon & Matthias Dahm, 2007. "Foundations For Contest Success Functions," Economics Working Papers we070401, Universidad Carlos III, Departamento de Economía.
- Arye L. Hillman & John G. Riley, 1989.
"Politically Contestable Rents And Transfers,"
Economics and Politics,
Wiley Blackwell, vol. 1(1), pages 17-39, 03.
- Hao Jia & Stergios Skaperdas & Samarth Vaidya, 2012.
"Contest Functions: Theoretical Foundations and Issues in Estimation,"
111214, University of California-Irvine, Department of Economics.
- Jia, Hao & Skaperdas, Stergios & Vaidya, Samarth, 2013. "Contest functions: Theoretical foundations and issues in estimation," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 211-222.
- Stergios Skaperdas & Samarth Vaidya, 2007.
"Persuasion as a Contest,"
CESifo Working Paper Series
2160, CESifo Group Munich.
- Stergios Skaperdas & Samarth Vaidya, 2008. "Persuasion as a Contest," Economics Series 2008_07, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- Stergios Skaperdas & Samarth Vaidya, 2007. "Persuasion as a Contest," Working Papers 070809, University of California-Irvine, Department of Economics.
- Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
- Blackorby, Charles & Donaldson, David, 1980. "A Theoretical Treatment of Indices of Absolute Inequality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 107-36, February.
- Kaoru Ueda, 2002. "Oligopolization in collective rent-seeking," Social Choice and Welfare, Springer, vol. 19(3), pages 613-626.
- José Alcalde & Matthias Dahm, 2007.
"Tullock And Hirshleifer: A Meeting Of The Minds,"
Working Papers. Serie AD
2007-13, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Kolm, Serge-Christophe, 1976. "Unequal inequalities. I," Journal of Economic Theory, Elsevier, vol. 12(3), pages 416-442, June.
- Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603, September.
- Jack Hirshleifer, 1983. "From weakest-link to best-shot: The voluntary provision of public goods," Public Choice, Springer, vol. 41(3), pages 371-386, January.
- Jennifer Brown & Dylan B. Minor, 2011. "Selecting the Best? Spillover and Shadows in Elimination Tournaments," NBER Working Papers 17639, National Bureau of Economic Research, Inc.
- Sen, Amartya, 1973. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198281931, September.
- Johannes Münster, 2009. "Group contest success functions," Economic Theory, Springer, vol. 41(2), pages 345-357, November.
- Skaperdas, Stergios & Syropoulos, Constantinos, 1996. "Can the shadow of the future harm cooperation?," Journal of Economic Behavior & Organization, Elsevier, vol. 29(3), pages 355-372, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.