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Foundations for contest success functions

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  • Corchón, Luis C.
  • Dahm, Matthias

Abstract

We examine two approaches to contest success functions. In the first we analyze the implications of contestants´ incomplete information concerning the `type´ of the contest administrator. While in the case of two contestants this approach can rationalize prominent contest success functions, we show that it runs into difficulties when there are more agents. Our second approach interprets contest success functions as sharing rules and establishes a connection to bargaining and claims problems which is independent of the number of contestants. Both approaches provide foundations for popular contest success functions and guidelines for the definition of new ones.

Suggested Citation

  • Corchón, Luis C. & Dahm, Matthias, 2007. "Foundations for contest success functions," UC3M Working papers. Economics we070401, Universidad Carlos III de Madrid. Departamento de Economía.
    • Handle: RePEc:cte:werepe:we070401
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    Cited by:

    1. Corchón, Luis & Dahm, Matthias, 2011. "Welfare maximizing contest success functions when the planner cannot commit," Journal of Mathematical Economics, Elsevier, vol. 47(3), pages 309-317.
    2. Yosef Mealem & Shmuel Nitzan, 2014. "Equity and effectiveness of optimal taxation in contests under an all-pay auction," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 42(2), pages 437-464, February.
    3. Hoffmann, Magnus & Kolmar, Martin, 2017. "Distributional preferences in probabilistic and share contests," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 120-139.
    4. Stergios Skaperdas, 2011. "Proprietary Public Finance: On Its Emergence and Evolution Out of Anarchy," Working Papers 101110, University of California-Irvine, Department of Economics.
    5. Corchón, Luis C. & Dahm, Matthias, 2009. "Welfare maximizing contest success functions when the planner cannot commit," UC3M Working papers. Economics we097343, Universidad Carlos III de Madrid. Departamento de Economía.
    6. Jia, Hao & Skaperdas, Stergios & Vaidya, Samarth, 2013. "Contest functions: Theoretical foundations and issues in estimation," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 211-222.
    7. Matthias Dahm & Nicolás Porteiro, 2008. "Biased contests," Public Choice, Springer, vol. 136(1), pages 55-67, July.
    8. Thomas Giebe & Paul Schweinzer, 2015. "Probabilistic procurement auctions," Review of Economic Design, Springer;Society for Economic Design, vol. 19(1), pages 25-46, March.
    9. Giebe, Thomas, 2014. "Innovation contests with entry auction," Journal of Mathematical Economics, Elsevier, vol. 55(C), pages 165-176.
    10. Luis Corchón, 2007. "The theory of contests: a survey," Review of Economic Design, Springer;Society for Economic Design, vol. 11(2), pages 69-100, September.

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    More about this item

    Keywords

    Endogenous Contests;

    JEL classification:

    • 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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