Template-Type: ReDIF-Paper 1.0
Author-Name: Pau Balart
Author-Name-First: Pau
Author-Name-Last: Balart
Author-Name: Subhasish Chowdhury
Author-Name-First: Subhasish
Author-Name-Last: Chowdhury
Author-Name: Orestis Troumpounis
Author-Name-First: Orestis
Author-Name-Last: Troumpounis
Title: Linking individual and collective contests through noise level and sharing rules
Abstract: We provide a theoretical link between the two most prominent ways of modeling<br/>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.
Creation-Date: 2015
File-URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2015_026.pdf
File-Format: application/pdf
Number: 98653895
Classification-JEL: C72, D72, D74
Keywords: Individual contest, Collective contest, Equivalence
Handle: RePEc:lan:wpaper:98653895