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Effort Discrimination and Curvature of Contest Technology in Conflict Networks

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  • Xiang Sun
  • Jin Xu
  • Junjie Zhou

Abstract

In a model of interconnected conflicts on a network, we compare the equilibrium effort profiles and payoffs under two scenarios: uniform effort (UE) in which each contestant is restricted to exert the same effort across all the battles she participates, and discriminatory effort (DE) in which such a restriction is lifted. When the contest technology in each battle is of Tullock form, a surprising neutrality result holds within the class of semi-symmetric conflict network structures: both the aggregate actions and equilibrium payoffs under two regimes are the same. We also show that, in some sense, the Tullock form is necessary for such a neutrality result. Moving beyond the Tullock family, we further demonstrate how the curvature of contest technology shapes the welfare and effort effects.

Suggested Citation

  • Xiang Sun & Jin Xu & Junjie Zhou, 2023. "Effort Discrimination and Curvature of Contest Technology in Conflict Networks," Papers 2302.09861, arXiv.org, revised Oct 2023.
    • Handle: RePEc:arx:papers:2302.09861
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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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