Article ID Journal Published Year Pages File Type
5057773 Economics Letters 2017 4 Pages PDF
Abstract

•The asymmetric two-player Tullock contest has a unique equilibrium for r≤2.•This result completes, in a sense, the analysis of the two-player Tullock contest.•We offer a comprehensive view on the comparative statics of the model.•We also show that the equilibrium set does not depend on the tie-breaking rule.•As an application, we derive a revenue ranking for optimally biased contests.

It is shown that the equilibrium in the asymmetric two-player Tullock contest is unique for parameter values r≤2. This allows proving a revenue ranking result saying that a revenue-maximizing designer capable of biasing the contest always prefers a technology with higher r.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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