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Large contests without single crossing

Author

Listed:
  • Wojciech Olszewski

    (Northwestern University)

  • Ron Siegel

    (The Pennsylvania State University)

Abstract

We show that the equilibria of contests with many players and prizes are approximated by certain single-agent mechanisms. This complements the work of Olszewski and Siegel (Econometrica 84:835–854, 2016), who considered a more restricted environment in which players’ utility function satisfies a strict single crossing condition. Relaxing strict single crossing enlarges the set of approximating mechanisms and weakens the notion of approximation, but implications regarding equilibrium behavior in large contests can nevertheless often be derived. When the approximating mechanism is unique, a stronger notion of approximation obtains.

Suggested Citation

  • Wojciech Olszewski & Ron Siegel, 2022. "Large contests without single crossing," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(4), pages 1043-1055, November.
    • Handle: RePEc:spr:joecth:v:74:y:2022:i:4:d:10.1007_s00199-019-01244-1
    DOI: 10.1007/s00199-019-01244-1
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    References listed on IDEAS

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    1. Paul R. Milgrom & Robert J. Weber, 1985. "Distributional Strategies for Games with Incomplete Information," Mathematics of Operations Research, INFORMS, vol. 10(4), pages 619-632, November.
    2. Barut, Yasar & Kovenock, Dan, 1998. "The symmetric multiple prize all-pay auction with complete information," European Journal of Political Economy, Elsevier, vol. 14(4), pages 627-644, November.
    3. Roger B. Myerson, 1981. "Optimal Auction Design," Mathematics of Operations Research, INFORMS, vol. 6(1), pages 58-73, February.
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    Citations

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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. Prokopovych, Pavlo & Yannelis, Nicholas C., 2023. "On monotone pure-strategy Bayesian-Nash equilibria of a generalized contest," Games and Economic Behavior, Elsevier, vol. 140(C), pages 348-362.

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    More about this item

    Keywords

    All-pay auctions; Asymmetric contests; Large games; Mechanism design;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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