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A Threshold Interpretation of the Ratio-Form Contest Success Function

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  • Jeremy Petranka

    (Department of Business Economics and Public Policy, Indiana University Kelley School of Business)

Abstract

Ratio-form contest success functions have been widely used due to their appealing axiomatic properties. Existing microfoundational models offer additional justifications for their use in specific economic applications. I propose a new structure under which a ratio-form contest success function can be derived as a limit result using an underlying contest with multiple rounds and threshold success levels. This model generalizes the stochastic equivalence of ratio-form contest success functions and patent race games, allowing greater fl exibility in the underlying structural interpretation. I additionally formulate a spatial interpretation of the model and apply the general structure to existing models of conflict.

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File URL: http://www.bus.indiana.edu/riharbau/RePEc/iuk/wpaper/bepp2010-06-petranka.pdf
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Bibliographic Info

Paper provided by Indiana University, Kelley School of Business, Department of Business Economics and Public Policy in its series Working Papers with number 2010-06.

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Date of creation: Sep 2009
Date of revision: Mar 2010
Handle: RePEc:iuk:wpaper:2010-06

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  1. Birendra K. Rai & Rajiv Sarin, 2007. "Parametric Contest Success Functions," Jena Economic Research Papers 2007-010, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  2. Birendra K. Rai & Rajiv Sarin, 2007. "Generalized Contest Success Functions," Jena Economic Research Papers 2007-082, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.
  3. Jeremy Petranka, 2008. "A Conflict Theory of Voting," Working Papers 2010-07, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy, revised Mar 2010.
  4. Perez-Castrillo, J David & Verdier, Thierry, 1992. " A General Analysis of Rent-Seeking Games," Public Choice, Springer, vol. 73(3), pages 335-50, April.
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Cited by:
  1. Jeremy Petranka, 2008. "A Conflict Theory of Voting," Working Papers 2010-07, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy, revised Mar 2010.

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