Options
Optimal Accuracy of Unbiased Tullock Contests with Two Heterogeneous Players
Sahm, Marco (2022): Optimal Accuracy of Unbiased Tullock Contests with Two Heterogeneous Players, in: Bamberg: Otto-Friedrich-Universität.
Faculty/Chair:
Author:
Publisher Information:
Year of publication:
2022
Pages:
Source/Other editions:
Games, 13 (2022), 2, 6 S. - ISSN: 2073-4336
Year of first publication:
2022
Language:
English
Abstract:
I characterize the optimal accuracy level r of an unbiased Tullock contest between two players with heterogeneous prize valuations. The designer maximizes the winning probability of the strong player or the winner’s expected valuation by choosing a contest with an all-pay auction equilibrium (r≥2). By contrast, if she aims at maximizing the expected aggregate effort or the winner’s expected effort, she will choose a contest with a pure-strategy equilibrium, and the optimal accuracy level r<2 decreases in the players’ heterogeneity. Finally, a contest designer who faces a tradeoff between selection quality and minimum (maximum) effort will never choose a contest with a semi-mixed equilibrium.
GND Keywords: ; ; ; ;
Spieltheorie
Auktionstheorie
Wettbewerb
Gewinn
Wahrscheinlichkeit
Keywords: ; ; ; ; ;
Tullock contest
heterogeneous valuations
accuracy
discrimination
optimal design
all-pay auction
DDC Classification:
RVK Classification:
Type:
Article
Activation date:
January 12, 2023
Project(s):
Permalink
https://fis.uni-bamberg.de/handle/uniba/56203