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Effort discrimination and curvature of contest technology in conflict networks

Author

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  • Sun, Xiang
  • Xu, Jin
  • Zhou, Junjie

Abstract

In a model of interconnected conflicts on a network, we compare the equilibrium effort profiles and payoffs under two scenarios: uniform effort (UE) in which each contestant is restricted to exert the same effort across all the battles she participates, and discriminatory effort (DE) in which such a restriction is lifted. When the contest technology in each battle is of Tullock form, a surprising neutrality result holds within the class of semi-symmetric conflict network structures: both the aggregate actions and equilibrium payoffs under two regimes are the same. We also show that, in some sense, the Tullock form is necessary for such a neutrality result. Moving beyond the Tullock family, we further demonstrate how the curvature of contest technology shapes the welfare and effort effects.

Suggested Citation

  • Sun, Xiang & Xu, Jin & Zhou, Junjie, 2023. "Effort discrimination and curvature of contest technology in conflict networks," Games and Economic Behavior, Elsevier, vol. 142(C), pages 978-991.
    • Handle: RePEc:eee:gamebe:v:142:y:2023:i:c:p:978-991
    DOI: 10.1016/j.geb.2023.10.013
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    Keywords

    Conflict network; Neutrality; Curvature of contest technology;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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