Effort Maximization in Asymmetric N-person Contest Games
Abstract
This paper provides existence and characterization of the optimal contest success function under the condition that the objective of the contest designer is total effort maximization among n heterogeneous players. Heterogeneity of players makes active participation of a player in equilibrium endogenous with respect to the specific contest success function adopted by the contest designer. Hence, the aim of effort maximization implies the identification of those players who should be excluded from making positive efforts.We give a general proof for the existence of an optimal contest success function and provide an algorithm for the determination of the set of actively participating players.This is turn allows to determine optimal efforts in closed form.An important general feature of the solution is that maximization of total effort requires at least three players to be active.Download Info
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Paper provided by Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen in its series Ruhr Economic Papers with number 0130.Length: 30 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:rwi:repape:0130
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Related research
Keywords: Effort maximization; existence of solution; asymmetric contests; participation constraints;Other versions of this item:
- Jörg Franke & Christian Kanzow & Wolfgang Leininger & Alexandra Väth, 2009. "Effort Maximization in Asymmetric N-Person Contest Games," CESifo Working Paper Series 2744, CESifo Group Munich.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-22 (All new papers)
- NEP-GTH-2009-08-22 (Game Theory)
References
References listed on IDEASPlease 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.:
- Richard Cornes & Roger Hartley, 2002.
"Asymmetric Contests with General Technologies,"
Keele Economics Research Papers
KERP 2002/22, Centre for Economic Research, Keele University.
- Richard Cornes & Roger Hartley, 2005. "Asymmetric contests with general technologies," Economic Theory, Springer, vol. 26(4), pages 923-946, November.
- Nti, Kofi O., 2004. "Maximum efforts in contests with asymmetric valuations," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1059-1066, November.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- 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.
- Carmen Beviá & Luis C. Corchón, 2011. "Endogenous strength in conflicts," Economics Working Papers we1113, Universidad Carlos III, Departamento de Economía.
- Epstein, Gil S. & Mealem, Yosef & Nitzan, Shmuel, 2012. "Lotteries vs. All-Pay Auctions in Fair and Biased Contests," IZA Discussion Papers 7032, Institute for the Study of Labor (IZA).
- Epstein, Gil S. & Mealem, Yosef & Nitzan, Shmuel, 2012. "The Efficacy and Efforts of Interest Groups in Post Elections Policy Formation," IZA Discussion Papers 7031, Institute for the Study of Labor (IZA).
- Kaplan, Todd R & Wettstein, David, 2010.
"The optimal design of rewards in contests,"
MPRA Paper
27397, University Library of Munich, Germany.
- Kaplan, Todd & Wettstein, David, . "The Optimal Design of Rewards in Contests," Working Papers WP2010/6, University of Haifa, Department of Economics, revised 22 Nov 2010.
- 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.
- repec:ner:carlos:info:hdl:10016/11621 is not listed on IDEAS
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