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Robust Comparative Statics in Contests

Author

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  • Adriana Gama
  • David Michael Rietzke

Abstract

We drive several robust comparative statics results in a contest under minimal restrictions on the primitives. Some of our findings generalize existing results, while others clarify the relevance of structure commonly imposed in the literature. Contrasting prior results, we show, via an example, that equilibrium payoffs may be (strictly) decreasing in the value of the prize. We also obtain a condition under which equilibrium aggregate activity decreases in the number of players. Finally, we shed light on equilibrium existence and uniqueness. Differentiating this study from past work is our reliance on lattice-theoretic techniques, which allows for a more general approach.

Suggested Citation

  • Adriana Gama & David Michael Rietzke, 2017. "Robust Comparative Statics in Contests," Working Papers 173174403, Lancaster University Management School, Economics Department.
    • Handle: RePEc:lan:wpaper:173174403
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    File URL: http://www.lancaster.ac.uk/media/lancaster-university/content-assets/documents/lums/economics/working-papers/LancasterWP2017_017.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Gama, Adriana & Rietzke, David, 2019. "Monotone comparative statics in games with non-monotonic best-replies: Contests and Cournot oligopoly," Journal of Economic Theory, Elsevier, vol. 183(C), pages 823-841.
    2. Christian Ewerhart & Julia Lareida, 2018. "Voluntary disclosure in asymmetric contests," ECON - Working Papers 279, Department of Economics - University of Zurich, revised Jul 2023.

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    More about this item

    Keywords

    Contests; Supermodularity; Entry; Comparative Statics;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • 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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