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Strategically equivalent contests

Author

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  • Subhasish Chowdhury
  • Roman Sheremeta
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. Copyright The Author(s) 2015

Suggested Citation

  • Subhasish Chowdhury & Roman Sheremeta, 2015. "Strategically equivalent contests," Theory and Decision, Springer, vol. 78(4), pages 587-601, April.
    • Handle: RePEc:kap:theord:v:78:y:2015:i:4:p:587-601
    DOI: 10.1007/s11238-014-9440-5
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    2. 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.
    3. Cason, Timothy N. & Masters, William A. & Sheremeta, Roman M., 2020. "Winner-take-all and proportional-prize contests: Theory and experimental results," Journal of Economic Behavior & Organization, Elsevier, vol. 175(C), pages 314-327.
    4. James W. Boudreau & Haikady N. Nagaraja & Lucas Rentschler & Shane D. Sanders, 2024. "The role of luck in political and economic competition: noisy all-pay auctions," Public Choice, Springer, vol. 199(1), pages 137-157, April.
    5. Sheremeta, Roman, 2014. "Behavioral Dimensions of Contests," MPRA Paper 57751, University Library of Munich, Germany.
    6. De Geest, Lawrence R. & Stranlund, John K., 2019. "Defending public goods and common-pool resources," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 79(C), pages 143-154.
    7. Ewerhart, Christian, 2017. "The lottery contest is a best-response potential game," Economics Letters, Elsevier, vol. 155(C), pages 168-171.
    8. 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.
    9. Sung-Hoon Park & Jason F. Shogren, 2021. "A Virtuous Circle of Governance Contests with Externalities," Sustainability, MDPI, vol. 13(14), pages 1-12, July.
    10. Kjell Hausken, 2020. "Additive multi-effort contests," Theory and Decision, Springer, vol. 89(2), pages 203-248, September.
    11. Chen Cohen & Roy Darioshi & Shmuel Nitzan, 2023. "Equivalent Modes of Reimbursement in Augmented Contests," Games, MDPI, vol. 14(2), pages 1-6, March.
    12. Aner Sela, 2018. "Reverse Contests," Working Papers 1804, Ben-Gurion University of the Negev, Department of Economics.
    13. Alice Guerra & Barbara Luppi & Francesco Parisi, 2019. "Productive and unproductive competition: a unified framework," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 36(3), pages 785-804, October.
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    15. Eisenkopf, Gerald, 2019. "Partisan lobbyists in conflicts," European Journal of Political Economy, Elsevier, vol. 60(C).
    16. Barbos, Andrei, 2013. "An alternative interpretation of random noise in rank-order tournaments," Economics Letters, Elsevier, vol. 121(2), pages 326-329.
    17. Walter Ferrarese, 2022. "Equilibrium effort in games with homogeneous production functions and homogeneous valuation," International Journal of Economic Theory, The International Society for Economic Theory, vol. 18(2), pages 195-212, June.

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    More about this item

    Keywords

    Rrent-seeking; Contest; Equivalence; Contest design; C72; D72; D74;
    All these keywords.

    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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