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Nested Tullock contests with nonmonotone prizes

Author

Listed:
  • Jingfeng Lu

    (National University of Singapore)

  • Zhewei Wang

    (Shandong University)

  • Lixue Zhou

    (Shandong University)

Abstract

This paper demonstrates the possibility of a symmetric “binary-action mixed-strategy equilibrium” in the nested Tullock contest model (Clark and Riis in Public Choice 87:177–184, 1996; Eur J Polit Econ 14(4):605–625, 1998b) with multiple nonmonotone prizes. In this symmetric equilibrium, every player adopts the same mixed strategy: each exerts zero effort with some probability and a constant positive effort otherwise. This new type of equilibrium can coexist with the pure-strategy equilibria established in the literature; it may exist even when those pure-strategy equilibria do not. The coexisting (mixed and pure-strategy) equilibria may induce different levels of effort supply.

Suggested Citation

  • Jingfeng Lu & Zhewei Wang & Lixue Zhou, 2023. "Nested Tullock contests with nonmonotone prizes," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(1), pages 303-332, March.
    • Handle: RePEc:spr:jogath:v:52:y:2023:i:1:d:10.1007_s00182-022-00820-5
    DOI: 10.1007/s00182-022-00820-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Tullock contests; Multiple prizes; Binary-action; Mixed-strategy equilibrium;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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