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The Equivalence of Contests

Authors: Chowdhury, Subhashish M.; Sheremeta, Roman M.;

The Equivalence of Contests

Abstract

We use a Tullock-type contest model to show that intuitively and structurally different contests can be strategically and revenue equivalent to each other. We consider a two-player contest, where outcome-contingent payoffs are linear functions of prizes, own effort, and the effort of the rival. We identify strategically equivalent contests that generate the same family of best response functions and, as a result, the same revenue. However, two strategically equivalent contests may yield different equilibrium payoffs. Finally, we discuss possible contest design applications and avenues for future theoretical and empirical research.

Country
United States
Related Organizations
Keywords

contest, equivalence, rent-seeking, rent-seeking, contest, spillover, equivalence, revenue equivalence, contest design, contest design, jel: jel:D74, jel: jel:C72, jel: jel:D72

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Powered by OpenAIRE graph
Found an issue? Give us feedback
citations
The total number of citations received by all articles of the researcher of interest.
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
3
Average
Average
Average
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