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We study the sorting of contestants across Tullock contests, and the allocation of a prize budget across these contests. Our benchmark result is that total effort is maximized by a unique grand contest and contestant exclusions decrease total effort. We consider two extensions of our benchmark...
Persistent link: https://www.econbiz.de/10013296576
We analyze the determinants of tacit collusion in an infinitely repeated contest with noise in the contest success function. Sustaining collusion via Nash reversion strategies is easier the more noise there is, and is more difficult the larger is the contest's prize value. An increase in the...
Persistent link: https://www.econbiz.de/10013019212
Two players with independent private values compete for a prize in an all-pay contest. Before the contest, each player can spy on the opponent by privately acquiring a costly, noisy, and private signal about his private value. In a symmetric equilibrium of the contest where players spy on each...
Persistent link: https://www.econbiz.de/10012902624
In competitive settings, disparities in player strength are common. It is intuitively unclear whether a stronger player would opt for larger or smaller effort compared to weaker players. Larger effort could leverage their strength, while lower effort might be justified by their higher...
Persistent link: https://www.econbiz.de/10014502280
We formulate a model to explain why the lack of political competition may stifle economic performance and use the … political competition have quantitatively important effects on state income growth, state policies, and quality of Governors. By … our bottom-line estimate, the increase in political competition triggered by the Voting Rights Act raised long-run per …
Persistent link: https://www.econbiz.de/10010439365
Studies presented the importance of conflict costs. Cultural diversity adds more complexity to working groups …, fostering conflict. The aim of this research is to investigate how cultural diversity affects conflict costs, measured in terms … and 185 respondents for culturally diverse conflict situations. The differences between the two groups are explored by …
Persistent link: https://www.econbiz.de/10014511519
One possible solution to mitigate the negative influences of conflict which has been proposed in the literature is to … increasing an individual's social capital will lead her to reduce her conflict effort, whereas increasing her human capital can … induce her to increase her conflict effort. We then analyze which conditions need to be present to induce the individuals to …
Persistent link: https://www.econbiz.de/10010264810
This paper considers incentives for information acquisition ahead of conflicts. First, we characterize the (unique) equilibrium of the all-pay auction between two players with one-sided asymmetric information where one player has private information about his valuation. Then, we use ou rresults...
Persistent link: https://www.econbiz.de/10010334005
conflict models. They follow from incorporating positional dynamics into the standard static approach. Such positional dynamics … are relevant for competition in battlefields, politics, and market places. …
Persistent link: https://www.econbiz.de/10010287741
We survey the empirical literature in economics on the impact of media technologies on social capital. Motivated by a simple model of information and collective action, we cover a range of different outcomes related to social capital, from social and political participation to interpersonal...
Persistent link: https://www.econbiz.de/10012670370