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Equivalent Modes of Reimbursement in Augmented Contests

Author

Listed:
  • Chen Cohen

    (Department of Public Policy and Management, Ben-Gurion University of the Negev, Beer-Sheva 84105, Israel)

  • Roy Darioshi

    (Department of Public Policy and Management, Ben-Gurion University of the Negev, Beer-Sheva 84105, Israel)

  • Shmuel Nitzan

    (Department of Economics, Bar-Ilan University, Ramat Gan 5290002, Israel)

Abstract

This article presents an equivalence theorem in the context of Tullock’s augmented lottery contest with external or internal cost reimbursement. Three alternative modes of reimbursement are studied. The equivalence implies that, even though the augmented contest is vulnerable to framing biases, it is strategically neutral.

Suggested Citation

  • Chen Cohen & Roy Darioshi & Shmuel Nitzan, 2023. "Equivalent Modes of Reimbursement in Augmented Contests," Games, MDPI, vol. 14(2), pages 1-6, March.
    • Handle: RePEc:gam:jgames:v:14:y:2023:i:2:p:31-:d:1112913
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    References listed on IDEAS

    as
    1. Chowdhury, Subhasish M. & Sheremeta, Roman M., 2011. "Multiple equilibria in Tullock contests," Economics Letters, Elsevier, vol. 112(2), pages 216-219, August.
    2. Hehenkamp, B. & Leininger, W. & Possajennikov, A., 2004. "Evolutionary equilibrium in Tullock contests: spite and overdissipation," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1045-1057, November.
    3. Cohen, Chen & Sela, Aner, 2005. "Manipulations in contests," Economics Letters, Elsevier, vol. 86(1), pages 135-139, January.
    4. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    5. Subhasish Chowdhury & Roman Sheremeta, 2015. "Strategically equivalent contests," Theory and Decision, Springer, vol. 78(4), pages 587-601, April.
    6. Fu, Qiang & Wu, Zenan, 2020. "On the optimal design of biased contests," Theoretical Economics, Econometric Society, vol. 15(4), November.
    Full references (including those not matched with items on IDEAS)

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