Large tullock contests

Date
2023-05-25
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Source Title
Journal of Economics/ Zeitschrift fur Nationalokonomie
Print ISSN
09318658
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Publisher
Springer Nature
Volume
140
Issue
2
Pages
169 - 179
Language
en
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Abstract

We characterize the equilibrium effort function of a large Tullock contest game with heterogeneous agents under mild conditions on the contest success function and effort cost function. Later, writing the equilibrium total effort explicitly under a uniform type distribution, we identify the effort-maximizing large Tullock contest. It is shown that the contest designer needs to increase the curvature of the effective effort function, thereby encouraging high-type agents to exert even higher efforts, as the curvature of the effort cost function increases or the support of the type distribution gets narrower.

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Published Version (Please cite this version)