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Equivalence of optimal noisy-ranking contests and Tullock contests

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  • Pelosse, Yohan

Abstract

We analyze a noisy-ranking contest in which participants compete in several dimensions. The organizer randomly samples a number of dimensions and awards a prize to the most productive agent. When the contest is optimally designed, we establish a structural equivalence between this family of noisy-ranking contests and contests built upon Tullock contest success functions. Our result also shows that in this class of noisy-contests, the profit-maximization problem of the planner can be turned into a stochastic choice problem for a planner who has some deterministic preferences over the contestants’ win probabilities.

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  • Pelosse, Yohan, 2011. "Equivalence of optimal noisy-ranking contests and Tullock contests," Journal of Mathematical Economics, Elsevier, vol. 47(6), pages 740-748.
    • Handle: RePEc:eee:mateco:v:47:y:2011:i:6:p:740-748
    DOI: 10.1016/j.jmateco.2011.10.005
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    1. João Ricardo Faria & Franklin G. Mixon, Jr. & Steven B. Caudill & Samantha J. Wineke, 2014. "Two-Dimensional Effort in Patent-Race Games and Rent-Seeking Contests: The Case of Telephony," Games, MDPI, vol. 5(2), pages 1-11, May.

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