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Strategically Equivalent Contests

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  • Chowdhury, Subhasish
  • Sheremeta, Roman

Abstract

Using a two-player Tullock-type contest we show that intuitively and structurally different contests can be strategically equivalent. Strategically equivalent contests generate the same best response functions and, as a result, the same equilibrium efforts. However, strategically equivalent contests may yield different equilibrium payoffs. We propose a simple two-step procedure to identify strategically equivalent contests. Using this procedure, we identify contests that are strategically equivalent to the original Tullock contest, and provide new examples of strategically equivalent contests. Finally, we discuss possible contest design applications and avenues for future theoretical and empirical research.

Suggested Citation

  • Chowdhury, Subhasish & Sheremeta, Roman, 2014. "Strategically Equivalent Contests," MPRA Paper 55450, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:55450
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    Cited by:

    1. Emmanuel Dechenaux & Dan Kovenock & Roman Sheremeta, 2015. "A survey of experimental research on contests, all-pay auctions and tournaments," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 609-669, December.
    2. Balart, Pau & Chowdhury, Subhasish M. & Troumpounis, Orestis, 2017. "Linking individual and collective contests through noise level and sharing rules," Economics Letters, Elsevier, vol. 155(C), pages 126-130.
    3. Chen Cohen & Roy Darioshi & Shmuel Nitzan, 2023. "Equivalent Modes of Reimbursement in Augmented Contests," Games, MDPI, vol. 14(2), pages 1-6, March.
    4. Aner Sela, 2018. "Reverse Contests," Working Papers 1804, Ben-Gurion University of the Negev, Department of Economics.
    5. Cason, Timothy N. & Masters, William A. & Sheremeta, Roman M., 2020. "Winner-take-all and proportional-prize contests: Theory and experimental results," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 314-327.
    6. Roman M. Sheremeta, 2014. "Behavioral Dimensions of Contests," Working Papers 14-14, Chapman University, Economic Science Institute.
    7. Sheremeta, Roman, 2014. "Behavior in Contests," MPRA Paper 57451, University Library of Munich, Germany.
    8. Barbos, Andrei, 2013. "An alternative interpretation of random noise in rank-order tournaments," Economics Letters, Elsevier, vol. 121(2), pages 326-329.
    9. Ben Chen & José A. Rodrigues-Neto, 2023. "The interaction of emotions and cost-shifting rules in civil litigation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(3), pages 841-885, April.
    10. De Geest, Lawrence R. & Stranlund, John K., 2019. "Defending public goods and common-pool resources," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 79(C), pages 143-154.
    11. Ewerhart, Christian, 2017. "The lottery contest is a best-response potential game," Economics Letters, Elsevier, vol. 155(C), pages 168-171.
    12. Sung-Hoon Park & Jason F. Shogren, 2021. "A Virtuous Circle of Governance Contests with Externalities," Sustainability, MDPI, vol. 13(14), pages 1-12, July.
    13. Kjell Hausken, 2020. "Additive multi-effort contests," Theory and Decision, Springer, vol. 89(2), pages 203-248, September.
    14. Alice Guerra & Barbara Luppi & Francesco Parisi, 2019. "Productive and unproductive competition: a unified framework," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 785-804, October.
    15. Eisenkopf, Gerald, 2019. "Partisan lobbyists in conflicts," European Journal of Political Economy, Elsevier, vol. 60(C).
    16. Walter Ferrarese, 2022. "Equilibrium effort in games with homogeneous production functions and homogeneous valuation," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(2), pages 195-212, June.

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    More about this item

    Keywords

    rent-seeking; contest; equivalence; contest design;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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; Revolutions

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