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Additive Multi-Effort Contests

Author

Listed:
  • Hausken, Kjell

    (UiS)

Abstract
A rent seeking model is axiomatized and analyzed where players exert multiple additive efforts. An analytical solution is developed when the contest intensity for one effort equals one. Then additional efforts give players higher expected utilities and lower rent dissipation, which contrasts with earlier findings for multiplicative efforts. Players optimize cost effectively across efforts, cutting back on the effort with contest intensity equal to one, and exerting alternative efforts instead. This latter effort eventually decreases towards zero as new efforts are added. It may not be optimal for both players to exert all their available efforts. Accounting for solutions which have to be determined numerically, a Nash equilibrium selection method is provided.

Suggested Citation

  • Hausken, Kjell, 2016. "Additive Multi-Effort Contests," UiS Working Papers in Economics and Finance 2016/2, University of Stavanger.
    • Handle: RePEc:hhs:stavef:2016_002
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Guizhou Wang & Jonathan W. Welburn & Kjell Hausken, 2020. "A Two-Period Game Theoretic Model of Zero-Day Attacks with Stockpiling," Games, MDPI, vol. 11(4), pages 1-26, December.
    2. Kjell Hausken & Jonathan W. Welburn, 2021. "Attack and Defense Strategies in Cyber War Involving Production and Stockpiling of Zero-Day Cyber Exploits," Information Systems Frontiers, Springer, vol. 23(6), pages 1609-1620, December.
    3. Hunt, Kyle & Agarwal, Puneet & Zhuang, Jun, 2022. "On the adoption of new technology to enhance counterterrorism measures: An attacker–defender game with risk preferences," Reliability Engineering and System Safety, Elsevier, vol. 218(PB).

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    More about this item

    Keywords

    Rent seeking; additive efforts; axiomatization; contest success function; rent dissipation.;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • 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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