Linking Individual and Collective Contests through Noise Level and Sharing Rules

Pau Balart, Subhasish M. Chowdhury, Orestis Troumpounis

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Abstract

We propose the use of Nitzan’s (1991) sharing rule in collective contests as a tractable way of modelling individual contests. This proposal (i) tractably introduces noise in Tullock contests when no closed form solution in pure strategies exists, (ii) satisfies the important property of homogeneity of degree zero, (iii) can be effort or noise equivalent to a standard Tullock contest.
Original languageEnglish
Pages (from-to)126-130
JournalEconomics Letters
Volume155
Early online date31 Mar 2017
DOIs
Publication statusPublished - Jun 2017

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