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Non-deterministic group contest with private information

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  • Mercier, Jean-François

Abstract

I study a non-deterministic group contest à la Tullock in which contestants are privately informed about their valuation for winning the contest. A group of two and a single contestant compete against each other to win the contest. I analyze contestants’ incentive to free-ride in the large group and I offer a sufficient condition for all contestants to exert strictly positive expected effort in equilibrium. Lastly, I apply this model to verify the validity of Olson’s paradox, which asserts that large groups are less effective than small groups at winning a contest.

Suggested Citation

  • Mercier, Jean-François, 2018. "Non-deterministic group contest with private information," Mathematical Social Sciences, Elsevier, vol. 95(C), pages 47-53.
    • Handle: RePEc:eee:matsoc:v:95:y:2018:i:c:p:47-53
    DOI: 10.1016/j.mathsocsci.2018.05.001
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    Cited by:

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