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Linking individual and collective contests through noise level and sharing rules

Author

Listed:
  • Pau Balart

    (Universidad Carlos III de Madrid)

  • Subhasish Modak Chowdhury

    (University of East Anglia)

  • Orestis Troumpounis

    (Lancaster University)

Abstract

We provide a theoretical link between the two most prominent ways of modelling 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 Tullock'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 Modak Chowdhury & Orestis Troumpounis, 2015. "Linking individual and collective contests through noise level and sharing rules," University of East Anglia School of Economics Working Paper Series 2015-07, School of Economics, University of East Anglia, Norwich, UK..
  • Handle: RePEc:uea:ueaeco:2015_07
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    References listed on IDEAS

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    Cited by:

    1. Subhasish M. Chowdhury & Patricia Esteve-González & Anwesha Mukherjee, 2020. "Heterogeneity, Leveling the Playing Field, and Affirmative Action in Contests," Economics Series Working Papers 915, University of Oxford, Department of Economics.
    2. Pau Balart & Agustin Casas & Orestis Troumpounis, 2019. "Technological change, campaign spending and polarization," Working Papers 269238020, Lancaster University Management School, Economics Department.

    More about this item

    Keywords

    individual contest; collective contest; equivalence;

    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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