Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
970050 | Journal of Public Economics | 2010 | 7 Pages |
Abstract
We consider rent seeking contests between at least two agents who might value the prize differently. We capture a wide range of institutional aspects of contests by analyzing a class of contest success functions fulfilling several properties. The main properties are anonymity and a condition on the elasticity of a rent seeker's win probability with respect to her effort. We show the existence of a mixed-strategy equilibrium and establish equilibrium payoffs. In this equilibrium complete rent dissipation holds. Our results imply a partial robustness result for the all-pay auction.
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Authors
José Alcalde, Matthias Dahm,