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On the evolution of prize perceptions in contests

Author

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  • Boudreau, James W.
  • Shunda, Nicholas

Abstract

We apply an indirect evolutionary approach to players' perceived prize valuations in contests. Evolution in finite populations leads to preferences that overstate the prize's material value and induce overexpenditure. We establish an equivalence between the behavior evolutionarily stable preferences induce and evolutionarily stable strategies.

Suggested Citation

  • Boudreau, James W. & Shunda, Nicholas, 2010. "On the evolution of prize perceptions in contests," MPRA Paper 24640, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:24640
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Kai A. Konrad & Florian Morath, 2016. "Evolutionary determinants of war," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(4), pages 520-534, August.
    2. Konrad, Kai A. & Morath, Florian, 2016. "Bargaining with incomplete information: Evolutionary stability in finite populations," Journal of Mathematical Economics, Elsevier, vol. 65(C), pages 118-131.

    More about this item

    Keywords

    Contest; Prize valuation; Preference evolution; Evolutionarily stable preferences;

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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