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Contest success functions: the common-pool perspective

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  • Christian Ewerhart

Abstract

The axiomatic route to the foundation of contest success functions (CSF) has proved to be both useful and prolific. The standard approach in the literature is based on the decision-theoretic notion that choice probabilities should be independent of irrelevant alternatives (Skaperdas, Economic Theory 1996). The present paper develops an alternative approach that suggests itself once the contest is re-interpreted as a common-pool resource problem. Proceeding along these lines, new axiomatizations are obtained for a variety of popular classes of CSFs, including the logit, Tullock, and difference-form CSFs. The axiomatizations provided are particularly parsimonious in the important special case of two contestants.

Suggested Citation

  • Christian Ewerhart, 2015. "Contest success functions: the common-pool perspective," ECON - Working Papers 195, Department of Economics - University of Zurich.
  • Handle: RePEc:zur:econwp:195
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    File URL: http://www.econ.uzh.ch/static/wp/econwp195.pdf
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    Cited by:

    1. Sakshi Gupta & Ram Singh, 2018. "On Existence and Properties of Pure-strategy Equilibria under Contests," Working Papers id:12840, eSocialSciences.
    2. Sakshi Gupta & Ram Singh, 2018. "On Existence and Properties of Pure-strategy Equilibria under Contests," Working papers 288, Centre for Development Economics, Delhi School of Economics.

    More about this item

    Keywords

    Contest success functions; axiomatic approach; common-pool resource problems;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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