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Linking individual and collective contests through noise level and sharing rules

Author

Listed:
  • Pau Balart
  • Subhasish Chowdhury
  • Orestis Troumpounis

Abstract

We provide a theoretical link between the two most prominent ways of modeling individual and collective contests as proposed by Tullock (1980) and Nitzan (1991) respectively. By introducing Nitzan's sharing rule as a way of modeling individual contests we obtain a contest success function nesting a standard Tullock contest and a fair lottery. We first provide an equivalence result between the proposed contest and Tulllock's contest for the two-player set-up. We then employ this nested contest as a way of introducing noise in multi-player contests when in the Tullock contest a closed form solution for the equilibrium in pure strategies does not exist. We conclude by comparing the proposed contest with the existing ones in the literature.

Suggested Citation

  • Pau Balart & Subhasish Chowdhury & Orestis Troumpounis, 2015. "Linking individual and collective contests through noise level and sharing rules," Working Papers 98653895, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:98653895
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    Cited by:

    1. Hubert János Kiss & Alfonso Rosa-Garcia & Vita Zhukova, 2023. "Group contest in a coopetitive setup: experimental evidence," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 18(3), pages 463-490, July.
    2. Sahuguet, Nicolas & Crutzen, Benoît SY & Flamand, Sabine, 2017. "Prize allocation and incentives in team contests," CEPR Discussion Papers 12493, C.E.P.R. Discussion Papers.
    3. Subhasish M. Chowdhury & Patricia Esteve‐González & Anwesha Mukherjee, 2023. "Heterogeneity, leveling the playing field, and affirmative action in contests," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 924-974, January.
    4. Balart, Pau & Casas, Agustin & Troumpounis, Orestis, 2022. "Technological change, campaign spending and polarization," Journal of Public Economics, Elsevier, vol. 211(C).
    5. Astrid Gamba & Luca Stanca, 2023. "Mis-judging merit: the effects of adjudication errors in contests," Experimental Economics, Springer;Economic Science Association, vol. 26(3), pages 550-587, July.
    6. Subhasish M. Chowdhury & Sang-Hyun Kim, 2021. "The Central Influencer Theorem: Spatial Voting Contests with Endogenous Coalition Formation," Working papers 2021rwp-193, Yonsei University, Yonsei Economics Research Institute.

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    More about this item

    Keywords

    Individual contest; Collective contest; Equivalence;
    All these keywords.

    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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