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Continuity And Robustness Of Bayesian Equilibria In Tullock Contests

Author

Listed:
  • Ezra Einy

    (BGU)

  • Diego Moreno

    (Departamento de Economia, Universidad Carlos III de Madrid)

  • Aner Sela

    (BGU)

Abstract

We study the continuity and robustness of the Bayesian equilibria of Tullock contests with incomplete information. We show that the Bayesian equilibrium correspondence is upper semicontinuous. We identify conditions under which the Bayesian equilibrium correspondence of Tullock contests with a unique equilibrium is also lower semicontinous. Furthermore, when the Bayesian equilibrium is unique, it is robust to small perturbations of the contest's attributes (the contest success function, and the players' information, value for the prize, and cost of effort).
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Ezra Einy & Diego Moreno & Aner Sela, 2020. "Continuity And Robustness Of Bayesian Equilibria In Tullock Contests," Working Papers 2003, Ben-Gurion University of the Negev, Department of Economics.
    • Handle: RePEc:bgu:wpaper:2003
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    References listed on IDEAS

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    More about this item

    Keywords

    Tullock Contests; Incomplete Information; Robustness of Equilibria;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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