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Evolutionary Equilibrium in Tullock Contests: Spite and Overdissipation

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  • Burkhard Hehenkamp
  • Wolfgang Leininger
  • Alex Possajennikov

Abstract

Tullock's analysis of rent-seeking as a contest is reconsidered from an evolutionary point of view. We show that evolutionary stable behavior in a Tullock contest exists and differs from behavior in Nash equilibrium. Evolutionary stable behavior in these contests is robust in a strong sense and may entail overdissipation of the contested rent.

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Bibliographic Info

Paper provided by University of Dortmund, Department of Economics in its series Discussion Papers in Economics with number 03_01.

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Length: 18 pages
Date of creation: Apr 2003
Date of revision:
Handle: RePEc:mik:wpaper:03_01

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  1. Baye, Michael R. & Hoppe, Heidrun C., 2003. "The strategic equivalence of rent-seeking, innovation, and patent-race games," Games and Economic Behavior, Elsevier, Elsevier, vol. 44(2), pages 217-226, August.
  2. Schoonbeek, L. & Kooreman, P., 1997. "The specification of the probability functions in Tullock's rentseeking contest," Open Access publications from Tilburg University urn:nbn:nl:ui:12-377560, Tilburg University.
  3. Armen A. Alchian, 1950. "Uncertainty, Evolution, and Economic Theory," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 58, pages 211.
  4. Michael R. Baye & Dan Kovenock & Casper De Vries, 2000. "Comparative Analysis of Litigation Systems: An Auction-Theoretic Approach," CESifo Working Paper Series 373, CESifo Group Munich.
  5. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer, Springer, vol. 7(2), pages 283-290.
  6. Alex Possajennikov, 2001. "Evolutionary Foundations of Aggregate-Taking Behavior," Discussion Papers in Economics, University of Dortmund, Department of Economics 01_10, University of Dortmund, Department of Economics.
  7. Hirshleifer, Jack & Osborne, Evan, 2001. " Truth, Effort, and the Legal Battle," Public Choice, Springer, Springer, vol. 108(1-2), pages 169-95, July.
  8. Michael R. Baye & Dan Kovenock & Casper G. de Vries, 1997. "The Incidence of Overdissipation in Rent-Seeking Contests," Tinbergen Institute Discussion Papers 97-045/2, Tinbergen Institute.
  9. Arye Hillman & Dov Samet, 1987. "Dissipation of contestable rents by small numbers of contenders," Public Choice, Springer, Springer, vol. 54(1), pages 63-82, January.
  10. Wolfgang Leininger, 2002. "Contests over Public Goods: Evolutionary Stability and the Free-Rider Problem," CESifo Working Paper Series 713, CESifo Group Munich.
  11. Wolfgang Leininger, 2003. "On evolutionarily stable behavior in contests," Economics of Governance, Springer, Springer, vol. 4(3), pages 177-186, November.
  12. J. Maynard Smith, 2010. "The Theory of Games and Evolution of Animal Conflicts," Levine's Working Paper Archive 448, David K. Levine.
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