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Large Tullock contests

Author

Listed:
  • Serhat Doğan

    (Bilkent University)

  • Emin Karagözoğlu

    (Bilkent University
    CESifo Munich)

  • Kerim Keskin

    (ADA University)

  • Çağrı Sağlam

    (Bilkent University)

Abstract

We characterize the equilibrium effort function of a large Tullock contest game with heterogeneous agents under mild conditions on the contest success function and effort cost function. Later, writing the equilibrium total effort explicitly under a uniform type distribution, we identify the effort-maximizing large Tullock contest. It is shown that the contest designer needs to increase the curvature of the effective effort function, thereby encouraging high-type agents to exert even higher efforts, as the curvature of the effort cost function increases or the support of the type distribution gets narrower.

Suggested Citation

  • Serhat Doğan & Emin Karagözoğlu & Kerim Keskin & Çağrı Sağlam, 2023. "Large Tullock contests," Journal of Economics, Springer, vol. 140(2), pages 169-179, October.
    • Handle: RePEc:kap:jeczfn:v:140:y:2023:i:2:d:10.1007_s00712-023-00829-8
    DOI: 10.1007/s00712-023-00829-8
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    References listed on IDEAS

    as
    1. Deren Çağlayan & Emin Karagözoğlu & Kerim Keskin & Çağrı Sağlam, 2022. "Effort comparisons for a class of four-player tournaments," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 59(1), pages 119-137, July.
    2. Olszewski, Wojciech & Siegel, Ron, 2020. "Performance-maximizing large contests," Theoretical Economics, Econometric Society, vol. 15(1), January.
    3. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603, Decembrie.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Large game; Tullock contests; Asymmetric contest; Contest design; Effort-maximizing contests;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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