We examine how the probability of persuading an audience depends on resources expended by contending parties. We use a Bayesian approach whereby the audience makes inferences solely based on the evidence produced by the constants. We find conditions that yield the well-known additive contest success functions, including the logit function. We also find conditions that produce a generalized "difference" functional form. In all cases, there are three main determinants of audience choice: (i) the truth and other objective parameters of the environment; (ii) the biases of the audience; and (iii) the resources expended by the interested parties.
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Paper provided by Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance in its series Economics Series with number
2008_07.
Stergios Skaperdas & Samarth Vaidya, 2007.
"Persuasion as a Contest,"
Working Papers
070809, University of California-Irvine, Department of Economics.
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Find related papers by JEL classification: C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General D20 - Microeconomics - - Production and Organizations - - - General D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Sendhil Mullainathan & Joshua Schwartzstein & Andrei Shleifer, 2006.
"Coarse Thinking and Persuasion,"
NBER Working Papers
12720, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Grossman, Gene M & Helpman, Elhanan, 1994.
"Protection for Sale,"
American Economic Review,
American Economic Association, vol. 84(4), pages 833-50, September.
[Downloadable!] (restricted)
Other versions:
Gene M. Grossman & Elhanan Helpman, 1992.
"Protection For Sale,"
NBER Working Papers
4149, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Enriqueta Aragones & Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2003.
"Fact-Free Learning,"
PIER Working Paper Archive
05-002, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 01 Dec 2004.
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Enriqueta Aragones & Itzhak Gilboa & Andrew Postlewaite & David Schmeidler, 2003.
"Fact-Free Learning,"
PIER Working Paper Archive
03-023, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
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