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This article considers an asymmetric contest with incomplete information. There are two types of players: informed and uninformed. Each player has a different ability to translate effort into performance in terms of the contest success function. While one player’s type is known to both...
Persistent link: https://www.econbiz.de/10010988755
Persistent link: https://www.econbiz.de/10004999615
Many economic and political decisions are the outcome of strategic contests for a given prize. The nature of such contests can be determined by a designer who is driven by political considerations with a specific political culture. The main objective of this study is to analyze the effect of...
Persistent link: https://www.econbiz.de/10014181020
Many economic and political decisions are the outcome of strategic contests for a given prize. The nature of such contests can be determined by a designer who is driven by political considerations with a specific political culture. The main objective of this study is to analyze the effect of...
Persistent link: https://www.econbiz.de/10013138016
In a contest group-specific public goods we consider the effect that managing an interest group has on the rent dissipation and the total expected payoffs of the contest. While in the first group, there is a central planner determining its members' expenditure in the contest, in the second group...
Persistent link: https://www.econbiz.de/10013123494
Government intervention often gives rise to contests and the government can influence their outcome by choosing their type. We consider a contest with two interest groups: one that is governed by a central planner and one that is not. Rent dissipation is compared under two well-known contest...
Persistent link: https://www.econbiz.de/10013061935
Many economic and political decisions are the outcome of strategic contests for a given prize. The nature of such contests can be determined by a designer who is driven by political considerations with a specific political culture. The main objective of this study is to analyze the effect of...
Persistent link: https://www.econbiz.de/10009007019
We consider a two group contest over a group specific public good comparing two situations: (i) when all players act independently; and (ii) when the players of each group cooperate. This comparison leads us to the conclusion that it is possible for one group to contribute more (and have a...
Persistent link: https://www.econbiz.de/10009383068
The form of contests for a single fixed prize can be determined by a designer who maximizes the contestants' efforts. This paper establishes that, under common knowledge of the two asymmetric contestants' prize valuations, a fair Tullock-type endogenously determined lottery is always superior to...
Persistent link: https://www.econbiz.de/10010253177
This paper evaluates direct and structural discrimination as a means of increasing efforts in the most widely studied contests. We establish that a designer who maximizes efforts subject to a balanced-budget constraint prefers dual discrimination, namely, change of the contestants ́prize...
Persistent link: https://www.econbiz.de/10010223058