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Strategically Equivalent Contests

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  • Chowdhury, Subhasish
  • Sheremeta, Roman

Abstract

Using a two-player Tullock-type contest we show that intuitively and structurally different contests can be strategically equivalent. Strategically equivalent contests generate the same best response functions and, as a result, the same equilibrium efforts. However, strategically equivalent contests may yield different equilibrium payoffs. We propose a simple two-step procedure to identify strategically equivalent contests. Using this procedure, we identify contests that are strategically equivalent to the original Tullock contest, and provide new examples of strategically equivalent contests. Finally, we discuss possible contest design applications and avenues for future theoretical and empirical research.

Suggested Citation

  • Chowdhury, Subhasish & Sheremeta, Roman, 2014. "Strategically Equivalent Contests," MPRA Paper 55450, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:55450
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    Cited by:

    1. Emmanuel Dechenaux & Dan Kovenock & Roman Sheremeta, 2015. "A survey of experimental research on contests, all-pay auctions and tournaments," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 609-669, December.
    2. Balart, Pau & Chowdhury, Subhasish M. & Troumpounis, Orestis, 2017. "Linking individual and collective contests through noise level and sharing rules," Economics Letters, Elsevier, vol. 155(C), pages 126-130.
    3. Roman M. Sheremeta & William A. Masters & Timothy N. Cason, 2012. "Winner-Take-All and Proportional-Prize Contests: Theory and Experimental Results," Working Papers 12-04, Chapman University, Economic Science Institute.
    4. Roman M. Sheremeta, 2014. "Behavioral Dimensions of Contests," Working Papers 14-14, Chapman University, Economic Science Institute.
    5. Sheremeta, Roman, 2014. "Behavior in Contests," MPRA Paper 57451, University Library of Munich, Germany.
    6. Barbos, Andrei, 2013. "An alternative interpretation of random noise in rank-order tournaments," Economics Letters, Elsevier, vol. 121(2), pages 326-329.
    7. Ewerhart, Christian, 2017. "The lottery contest is a best-response potential game," Economics Letters, Elsevier, vol. 155(C), pages 168-171.

    More about this item

    Keywords

    rent-seeking; contest; equivalence; contest design;

    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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