Contests with Size Effects
In this paper we analyze the structure of contest equilibria with a variable number of agents. First we analyze a situation where the total prize depends on the number of agents and where every single agent faces opportunity costs of investing in the contest. Second we analyze a situation where the agents face a trade-off between productive and appropriative investments. Here, the number of agents may also influence the productivity of productive investments. It turns out that both tyes of contests may lead to opposing results concerning the optimal numnber of contestants depending on the strength of size effects. Whereas in the former case individual utility is J-shaped when the number of agents increases, the opposite holds true for the latter case. We discuss the implications of our findings for the case of competition on markets and for the case fo unstable property rights.
|Date of creation:|
|Contact details of provider:|| Postal: Øster Farimagsgade 5, Building 26, DK-1353 Copenhagen K., Denmark|
Phone: (+45) 3532 4411
Fax: +45 35 32 30 00
Web page: http://www.econ.ku.dk/epru/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Herschel I. Grossman, 2000.
"The Creation of Effective Property Rights,"
NBER Working Papers
7897, National Bureau of Economic Research, Inc.
- Skaperdas, Stergios, 1992.
"Cooperation, Conflict, and Power in the Absence of Property Rights,"
American Economic Review,
American Economic Association, vol. 82(4), pages 720-739, September.
- Skaperdas, S., 1991. "Cooperation, Conflict And Power In The Absence Of Property Rights," Papers 90-91-06a, California Irvine - School of Social Sciences.
- Grossman, Herschel I., 1995. "Robin hood and the redistribution of property income," European Journal of Political Economy, Elsevier, vol. 11(3), pages 399-410, September.
- Richard Schmalensee, 1976. "A Model of Promotional Competition in Oligopoly," Review of Economic Studies, Oxford University Press, vol. 43(3), pages 493-507.
- Assaf Razin & Efraim Sadka, 1995. "Population Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262181606.
- Huck, Steffen & Konrad, Kai A. & Müller, Wieland, 2000.
"Divisionalization in contests,"
SFB 373 Discussion Papers
2000,9, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Grossman, Herschel I., 2002.
""Make us a king": anarchy, predation, and the state,"
European Journal of Political Economy,
Elsevier, vol. 18(1), pages 31-46, March.
- Herschel I. Grossman, 1997. ""Make Us a King": Anarchy, Predation, and the State," NBER Working Papers 6289, National Bureau of Economic Research, Inc.
- Jack Hirshleifer, 1992.
"Anarchy and Its Breakdown,"
UCLA Economics Working Papers
674, UCLA Department of Economics.
- Arye Hillman & Dov Samet, 1987. "Dissipation of contestable rents by small numbers of contenders," Public Choice, Springer, vol. 54(1), pages 63-82, January.
- Noh, Suk Jae, 2002. "Resource distribution and stable alliances with endogenous sharing rules," European Journal of Political Economy, Elsevier, vol. 18(1), pages 129-151, March.
- Grossman, Herschel I & Kim, Minseong, 1995. "Swords or Plowshares? A Theory of the Security of Claims to Property," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1275-1288, December.
- Bush, Winston C. & Mayer, Lawrence S., 1974. "Some implications of anarchy for the distribution of property," Journal of Economic Theory, Elsevier, vol. 8(4), pages 401-412, August.
- George E. Monahan, 1987. "The Structure of Equilibria in Market Share Attraction Models," Management Science, INFORMS, vol. 33(2), pages 228-243, February.
- Cornes, Richard & Hartley, Roger, 2003. "Risk Aversion, Heterogeneity and Contests," Public Choice, Springer, vol. 117(1-2), pages 1-25, October.
When requesting a correction, please mention this item's handle: RePEc:kud:epruwp:02-04. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Hoffmann)
If references are entirely missing, you can add them using this form.