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Axiomatizing additive multi-effort contests

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  • Kjell Hausken

    (University of Stavanger)

Abstract

A rent seeking model is axiomatized where players exert multiple additive efforts which are substitutable in the contest success function. The axioms assume the sufficiency of exerting one effort, and that adding an amount to one effort and subtracting the same amount from a second equivalent substitutable effort keeps the winning probabilities unchanged. In contrast, the multiplicative Cobb–Douglas production function in the earlier literature requires players to exert all their complementary efforts. The requirement follows from assuming a homogeneity axiom where an equiproportionate change in two players’ matched efforts does not affect the winning probabilities. This article abandons the homogeneity axiom and assumes an alternative axiom where the winning probabilities remain unchanged when a fixed positive amount is added to all players’ efforts. This article also assumes a so-called summation axiom where the winning probabilities remain unchanged when a player substitutes an amount of effort from one effort into another effort. The summation axiom excludes multiplicative production functions, and furnishes a foundation for additive production functions.

Suggested Citation

  • Kjell Hausken, 2021. "Axiomatizing additive multi-effort contests," SN Business & Economics, Springer, vol. 1(11), pages 1-12, November.
  • Handle: RePEc:spr:snbeco:v:1:y:2021:i:11:d:10.1007_s43546-021-00155-5
    DOI: 10.1007/s43546-021-00155-5
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    Cited by:

    1. Kjell Hausken, 2023. "Two-period Colonel Blotto contest with cumulative investments over variable assets with resource constraints," SN Business & Economics, Springer, vol. 3(11), pages 1-18, November.

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    More about this item

    Keywords

    Rent seeking; Additive efforts; Axioms; Contest success function;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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

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