• About
  • Policies
  • What is open access
  • Library
  • Contact
Advanced search
      View Item 
      •   BUIR Home
      • Scholarly Publications
      • Faculty of Economics, Administrative And Social Sciences
      • Department of Economics
      • View Item
      •   BUIR Home
      • Scholarly Publications
      • Faculty of Economics, Administrative And Social Sciences
      • Department of Economics
      • View Item
      JavaScript is disabled for your browser. Some features of this site may not work without it.

      Investment on human capital in a dynamic contest model

      Thumbnail
      View / Download
      401.9 Kb
      Author(s)
      Keskin, K.
      Sağlam, Hüseyin Çağrı
      Date
      2019
      Source Title
      Studies in Nonlinear Dynamics and Econometrics
      Print ISSN
      1081-1826
      Publisher
      De Gruyter
      Volume
      23
      Issue
      1
      Pages
      1 - 23
      Language
      English
      Type
      Article
      Item Usage Stats
      169
      views
      177
      downloads
      Abstract
      Although most contest games are modeled in such a way that the outcome depends only on the efforts exerted by the contestants, what is arguably more important is the contestants’ effective efforts which may be influenced also by their ability, human capital, strength, etc. In this paper, we investigate an extensive model including such an effectiveness parameter and analyze the optimal investment behavior in a dynamic conflict framework. At each period, two contestants compete for a common prize by choosing contest efforts and investment levels. Each contestant’s investment accumulates as his/her human capital which depreciates through time. Who wins the component contest at a particular period is determined by the contestants’ effective efforts, defined as increasing functions of their efforts and human capitals. Following the analysis of subgame perfect Nash equilibrium in a two-period model and of open-loop equilibrium in an infinite-horizon model, we provide intuitive comparative static results.
      Keywords
      Contests
      Dynamic contests
      Investment
      Efectiveness
      Human capital
      Permalink
      http://hdl.handle.net/11693/53416
      Published Version (Please cite this version)
      https://dx.doi.org/10.1515/snde-2017-0095
      Collections
      • Department of Economics 724
      Show full item record

      Browse

      All of BUIRCommunities & CollectionsTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsCoursesThis CollectionTitlesAuthorsAdvisorsBy Issue DateKeywordsTypeDepartmentsCourses

      My Account

      Login

      Statistics

      View Usage StatisticsView Google Analytics Statistics

      Bilkent University

      If you have trouble accessing this page and need to request an alternate format, contact the site administrator. Phone: (312) 290 2976
      © Bilkent University - Library IT

      Contact Us | Send Feedback | Off-Campus Access | Admin | Privacy