Simple equilibria in general contests

• 成果类型: Article
• 署名作者: Bastani, Spencer; Giebe, Thomas; Guertler, Oliver
• 署名单位: Research Institute of Industrial Economics (IFN); Leibniz Association; Ifo Institut; Linnaeus University; University of Cologne
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2022.05.006
• 发表日期: 2022
• 页码: 264-280
• 关键词: Contest theory; symmetric equilibrium; Heterogeneity; RISK; stochastic dominance

摘要

We show how symmetric equilibria emerge in general two-player contests in which skill and effort are combined to produce output according to a general production technology and players have skills drawn from different distributions. The model includes the Tullock (1980) and Lazear and Rosen (1981) models as special cases. Our paper provides intuition regarding how the contest components interact to determine the incentive to exert effort and sheds new light on classic comparative statics results. In particular, we show that more heterogeneity can increase equilibrium effort.(c) 2022 The Author(s). Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).