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Contests with dominant strategies

Author

Listed:
  • Carmen Beviá

    (Universidad de Alicante)

  • Luis Corchón

    (Universidad Carlos III de Madrid)

Abstract

In this paper, we first characterize the class of contest success functions (CSFs) that yield contests with equilibria in dominant strategies. Then we study the optimal contest as a decision problem under uncertainty. We consider the classical criteria of Wald, Laplace, Hurwicz and Savage. We find that the CSF that maximizes aggregate effort under these criteria has the form of an additively separable cutoff CSF.

Suggested Citation

  • Carmen Beviá & Luis Corchón, 2022. "Contests with dominant strategies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(4), pages 1-19, November.
    • Handle: RePEc:spr:joecth:v:74:y:2022:i:4:d:10.1007_s00199-019-01226-3
    DOI: 10.1007/s00199-019-01226-3
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    References listed on IDEAS

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    Cited by:

    1. Kai A. Konrad & Dan Kovenock, 2022. "Introduction to the Special Issue on Contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(4), pages 1017-1023, November.
    2. Dirk Bergemann & Tan Gan & Yingkai Li, 2023. "Managing Persuasion Robustly: The Optimality of Quota Rules," Papers 2310.10024, arXiv.org.

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    More about this item

    Keywords

    Contests; Dominant strategies; Optimality under uncertainty; Additively separable CSF;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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