R>\infty $$ 2 > R > ∞ ”) has countably infinitely many mass points. All probability weight is concentrated on those mass points, which have the zero bid as their sole point of accumulation. With contestants randomizing over a non-convex set, there is a cost of being “halfhearted,” which is absent from both the lottery contest and the all-pay auction. Numerical bid distributions are generally negatively skewed and exhibit, for some parameter values, a higher probability of ex-post overdissipation than the all-pay auction. Copyright The Author(s) 2015"> R>\infty $$ 2 > R > ∞ ”) has countably infinitely many mass points. All probability weight is concentrated on those mass points, which have the zero bid as their sole point of accumulation. With contestants randomizing over a non-convex set, there is a cost of being “halfhearted,” which is absent from both the lottery contest and the all-pay auction. Numerical bid distributions are generally negatively skewed and exhibit, for some parameter values, a higher probability of ex-post overdissipation than the all-pay auction. Copyright The Author(s) 2015"> R>\infty $$ 2 > R > ∞ ”) has countably infinitely many mass points. All prob">
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Mixed equilibria in Tullock contests

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  • Christian Ewerhart
Abstract
Any symmetric mixed-strategy equilibrium in a Tullock contest with intermediate values of the decisiveness parameter (“ $$2>R>\infty $$ 2 > R > ∞ ”) has countably infinitely many mass points. All probability weight is concentrated on those mass points, which have the zero bid as their sole point of accumulation. With contestants randomizing over a non-convex set, there is a cost of being “halfhearted,” which is absent from both the lottery contest and the all-pay auction. Numerical bid distributions are generally negatively skewed and exhibit, for some parameter values, a higher probability of ex-post overdissipation than the all-pay auction. Copyright The Author(s) 2015

Suggested Citation

  • Christian Ewerhart, 2015. "Mixed equilibria in Tullock contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 60(1), pages 59-71, September.
    • Handle: RePEc:spr:joecth:v:60:y:2015:i:1:p:59-71
    DOI: 10.1007/s00199-014-0835-x
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    More about this item

    Keywords

    Tullock contest; Mixed-strategy Nash equilibrium; Analytical functions; C72; D72; C16;
    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
    • C16 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Econometric and Statistical Methods; Specific Distributions

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