IDEAS home Printed from https://ideas.repec.org/a/spr/sochwe/v47y2016i4d10.1007_s00355-016-0998-4.html
   My bibliography  Save this article

Axiomatization of reverse nested lottery contests

Author

Listed:
  • Jingfeng Lu

    (National University of Singapore)

  • Zhewei Wang

    (Shandong University)

Abstract

The reverse nested lottery contest proposed by Fu et al. (2014) is the “mirror image” of the classical nested lottery contest of Clark and Riis (1996a), which has been axiomatized by Lu and Wang (2015). In this paper, we close the gap and provide an axiomatic underpinning for the reverse nested lottery contest by identifying a set of six necessary and sufficient axioms. These axioms proposed specify the properties of contestants’ probabilities of being ranked the lowest among all players or within subgroups, while the axiomatization of the classical nested lottery contest by Lu and Wang (2015) relies on axioms on contestants’ probabilities of being ranked the highest among all players or within subgroups.

Suggested Citation

  • Jingfeng Lu & Zhewei Wang, 2016. "Axiomatization of reverse nested lottery contests," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(4), pages 939-957, December.
    • Handle: RePEc:spr:sochwe:v:47:y:2016:i:4:d:10.1007_s00355-016-0998-4
    DOI: 10.1007/s00355-016-0998-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s00355-016-0998-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s00355-016-0998-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Birendra Rai & Rajiv Sarin, 2009. "Generalized contest success functions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(1), pages 139-149, July.
    2. Alberto Vesperoni, 2016. "A contest success function for rankings," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(4), pages 905-937, December.
    3. Cubel, María & Sanchez-Pages, Santiago, 2016. "An axiomatization of difference-form contest success functions," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 92-105.
    4. Maria Arbatskaya & Hugo Mialon, 2010. "Multi-activity contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 43(1), pages 23-43, April.
    5. Paul Schweinzer & Ella Segev, 2012. "The optimal prize structure of symmetric Tullock contests," Public Choice, Springer, vol. 153(1), pages 69-82, October.
    6. Mark Gradstein & Kai A. Konrad, 1999. "Orchestrating Rent Seeking Contests," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 571-580, Springer.
    7. Chowdhury, Subhasish M. & Kim, Sang-Hyun, 2014. "A note on multi-winner contest mechanisms," Economics Letters, Elsevier, vol. 125(3), pages 357-359.
    8. Amegashie, J Atsu, 2000. "Some Results on Rent-Seeking Contests with Shortlisting," Public Choice, Springer, vol. 105(3-4), pages 245-253, December.
    9. Szymanski, Stefan & Valletti, Tommaso M., 2005. "Incentive effects of second prizes," European Journal of Political Economy, Elsevier, vol. 21(2), pages 467-481, June.
    10. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-290.
    11. Hwang, Sung-Ha, 2012. "Technology of military conflict, military spending, and war," Journal of Public Economics, Elsevier, vol. 96(1), pages 226-236.
    12. Pavlo Blavatskyy, "undated". "Contest success function with the possibility of a draw: axiomatization," IEW - Working Papers 208, Institute for Empirical Research in Economics - University of Zurich.
    13. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    14. Blavatskyy, Pavlo R., 2010. "Contest success function with the possibility of a draw: Axiomatization," Journal of Mathematical Economics, Elsevier, vol. 46(2), pages 267-276, March.
    15. Clark, D.J. & Riis, C., 1996. "On the Win Probability in Rent-Seeking Gemes," Memorandum 1996_005, Oslo University, Department of Economics.
    16. Fu, Qiang & Lu, Jingfeng, 2009. "The beauty of "bigness": On optimal design of multi-winner contests," Games and Economic Behavior, Elsevier, vol. 66(1), pages 146-161, May.
    17. Yates, Andrew J. & Heckelman, Jac C., 2001. "Rent-setting in multiple winner rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 17(4), pages 835-852, November.
    18. Fu, Qiang & Lu, Jingfeng & Wang, Zhewei, 2014. "“Reverse” nested lottery contests," Journal of Mathematical Economics, Elsevier, vol. 50(C), pages 128-140.
    19. Lu, Jingfeng & Wang, Zhewei, 2015. "Axiomatizing multi-prize nested lottery contests: A complete and strict ranking perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 127-141.
    20. Clark, Derek J & Riis, Christian, 1996. "A Multi-winner Nested Rent-Seeking Contest," Public Choice, Springer, vol. 87(1-2), pages 177-184, April.
    21. Clark, Derek J. & Riis, Christian, 1998. "Influence and the discretionary allocation of several prizes," European Journal of Political Economy, Elsevier, vol. 14(4), pages 605-625, November.
    22. Beggs, S. & Cardell, S. & Hausman, J., 1981. "Assessing the potential demand for electric cars," Journal of Econometrics, Elsevier, vol. 17(1), pages 1-19, September.
    23. Sanchez-Pages, Santiago & Cubel, Maria, 2015. "An axiomatization of difference-form contest success functions," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-49, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    24. Lu, Jingfeng & Shen, Bo & Wang, Zhewei, 2017. "Optimal contest design under reverse-lottery technology," Journal of Mathematical Economics, Elsevier, vol. 72(C), pages 25-35.
    25. Berry, S Keith, 1993. "Rent-Seeking with Multiple Winners," Public Choice, Springer, vol. 77(2), pages 437-443, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bozbay, Irem & Vesperoni, Alberto, 2018. "A contest success function for networks," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 404-422.
    2. Lu, Jingfeng & Shen, Bo & Wang, Zhewei, 2017. "Optimal contest design under reverse-lottery technology," Journal of Mathematical Economics, Elsevier, vol. 72(C), pages 25-35.
    3. Kjell Hausken, 2021. "Axiomatizing additive multi-effort contests," SN Business & Economics, Springer, vol. 1(11), pages 1-12, November.
    4. Alberto Vesperoni & Anıl Yıldızparlak, 2019. "Inequality and conflict outbreak," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(1), pages 135-173, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alberto Vesperoni, 2016. "A contest success function for rankings," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(4), pages 905-937, December.
    2. Lu, Jingfeng & Wang, Zhewei, 2015. "Axiomatizing multi-prize nested lottery contests: A complete and strict ranking perspective," Journal of Economic Behavior & Organization, Elsevier, vol. 116(C), pages 127-141.
    3. repec:shn:wpaper:2014-02 is not listed on IDEAS
    4. Lu, Jingfeng & Shen, Bo & Wang, Zhewei, 2017. "Optimal contest design under reverse-lottery technology," Journal of Mathematical Economics, Elsevier, vol. 72(C), pages 25-35.
    5. Fu, Qiang & Lu, Jingfeng & Wang, Zhewei, 2014. "“Reverse” nested lottery contests," Journal of Mathematical Economics, Elsevier, vol. 50(C), pages 128-140.
    6. Qiang Fu & Jingfeng Lu, 2012. "Micro foundations of multi-prize lottery contests: a perspective of noisy performance ranking," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 38(3), pages 497-517, March.
    7. Bozbay, Irem & Vesperoni, Alberto, 2018. "A contest success function for networks," Journal of Economic Behavior & Organization, Elsevier, vol. 150(C), pages 404-422.
    8. Fu, Qiang & Wang, Xiruo & Wu, Zenan, 2021. "Multi-prize contests with risk-averse players," Games and Economic Behavior, Elsevier, vol. 129(C), pages 513-535.
    9. Fu, Qiang & Wu, Zenan & Zhu, Yuxuan, 2023. "On equilibrium uniqueness in generalized multi-prize nested lottery contests," Games and Economic Behavior, Elsevier, vol. 139(C), pages 180-199.
    10. Lu, Jingfeng & Lu, Yuanzhu & Wang, Zhewei & Zhou, Lixue, 2022. "Winner-leave versus loser-leave in multi-stage nested Tullock contests," Games and Economic Behavior, Elsevier, vol. 132(C), pages 337-352.
    11. Alberto Vesperoni & Anıl Yıldızparlak, 2019. "Inequality and conflict outbreak," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(1), pages 135-173, June.
    12. Kjell Hausken, 2021. "Axiomatizing additive multi-effort contests," SN Business & Economics, Springer, vol. 1(11), pages 1-12, November.
    13. Fu, Qiang & Lu, Jingfeng, 2007. "Unifying Contests: from Noisy Ranking to Ratio-Form Contest Success Functions," MPRA Paper 6679, University Library of Munich, Germany.
    14. Cubel, María & Sanchez-Pages, Santiago, 2016. "An axiomatization of difference-form contest success functions," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 92-105.
    15. Christian Ewerhart, 2015. "Contest success functions: the common-pool perspective," ECON - Working Papers 195, Department of Economics - University of Zurich.
    16. Fu, Qiang & Lu, Jingfeng, 2009. "The beauty of "bigness": On optimal design of multi-winner contests," Games and Economic Behavior, Elsevier, vol. 66(1), pages 146-161, May.
    17. 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.
    18. Liqun Liu & Nicolas Treich, 2021. "Optimality of winner-take-all contests: the role of attitudes toward risk," Journal of Risk and Uncertainty, Springer, vol. 63(1), pages 1-25, August.
    19. Aner Sela, 2020. "Optimal allocations of prizes and punishments in Tullock contests," International Journal of Game Theory, Springer;Game Theory Society, vol. 49(3), pages 749-771, September.
    20. Fu, Qiang & Wu, Zenan & Zhu, Yuxuan, 2022. "On equilibrium existence in generalized multi-prize nested lottery contests," Journal of Economic Theory, Elsevier, vol. 200(C).
    21. Sheremeta, Roman, 2009. "Essays on Experimental Investigation of Lottery Contests," MPRA Paper 49888, University Library of Munich, Germany.

    More about this item

    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
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sochwe:v:47:y:2016:i:4:d:10.1007_s00355-016-0998-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.