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Simple equilibria in general contests

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We show how symmetric equilibria emerge in general two-player contests in which skill and effort are combined to produce output according to a general production technology and players have skills drawn from different distributions. The model includes the Tullock (1980) and Lazear and Rosen (1981) models as special cases. Our paper provides intuition regarding how the contest components interact to determine the incentive to exert effort and sheds new light on classic comparative statics results. In particular, we show that more heterogeneity can increase equilibrium effort.(c) 2022 The Author(s). Published by Elsevier Inc. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).

Contest theorySymmetric equilibriumHeterogeneityRiskStochastic dominanceOPTIMAL-DESIGNASYMMETRIC CONTESTSCAREER CONCERNSRISK-TAKINGTOURNAMENTSPROMOTIONINCENTIVESINFORMATIONCOMPETITIONREWARDS

Bastani, Spencer、Giebe, Thomas、Guertler, Oliver

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Linnaeus Univ

Univ Cologne

2022

Games and economic behavior

Games and economic behavior

SSCI
ISSN:0899-8256
年,卷(期):2022.134
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