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Contests with interdependent preferences

  • Sherrill Shaffer

Relaxing the common assumption of purely self-interested preferences in contests, it is shown that altruism (bilateral or unilateral) reduces equilibrium rent-seeking effort. The effects on net payoffs are more complex. Strategic interdependence is possible, but the symmetric equilibrium is pure self-interest.

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Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 13 (2006)
Issue (Month): 13 ()
Pages: 877-880

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Handle: RePEc:taf:apeclt:v:13:y:2006:i:13:p:877-880
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  1. Andreoni,J. & Vesterlund,L., 1998. "Which is the fair sex? : Gender differences in altruism," Working papers 10, Wisconsin Madison - Social Systems.
  2. Mui, V.L., 1992. "The Economics of Envy," Papers 9306, Southern California - Department of Economics.
  3. Chung, Tai-Yeong, 1996. " Rent-Seeking Contest When the Prize Increases with Aggregate Efforts," Public Choice, Springer, vol. 87(1-2), pages 55-66, April.
  4. Hirshleifer, Jack, 1995. "Theorizing about conflict," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 7, pages 165-189 Elsevier.
  5. Ted Bergstrom & Oded Stark, . "How Altruism Can Prevail in an Evolutionary Environment," Papers _024, University of Michigan, Department of Economics.
  6. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-98, December.
  7. Fontanel, Jacques, 1995. "The economics of disarmament," Handbook of Defense Economics, in: Keith Hartley & Todd Sandler (ed.), Handbook of Defense Economics, edition 1, volume 1, chapter 19, pages 563-590 Elsevier.
  8. repec:att:wimass:9406 is not listed on IDEAS
  9. O'Neill, Barry, 1994. "Game theory models of peace and war," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 29, pages 995-1053 Elsevier.
  10. Jack Hirshleifer, 1995. "Theorizing About Conflict," UCLA Economics Working Papers 727, UCLA Department of Economics.
  11. James Andreoni, 1997. "Warm-glow versus cold-prickle: the effect of positive and negative framing on cooperation in experiments," Levine's Working Paper Archive 671, David K. Levine.
  12. Fudenberg, Drew & Tirole, Jean, 1984. "The Fat-Cat Effect, the Puppy-Dog Ploy, and the Lean and Hungry Look," American Economic Review, American Economic Association, vol. 74(2), pages 361-66, May.
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