• Medientyp: Bericht; E-Book
  • Titel: Optimal Accuracy of Unbiased Tullock Contests with Two Heterogeneous Players
  • Beteiligte: Sahm, Marco [Verfasser:in]
  • Erschienen: Munich: Center for Economic Studies and ifo Institute (CESifo), 2022
  • Sprache: Englisch
  • Schlagwörter: heterogeneous valuations ; all-pay auction ; Tullock contest ; accuracy ; discrimination ; optimal design ; D72 ; C72
  • Entstehung:
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  • Beschreibung: I characterize the optimal accuracy level r of an unbiased Tullock contest between two players with heterogeneous prize valuations. The designer maximizes the winning probability of the strong player or the winner's expected valuation by choosing a contest with an all-pay auction equilibrium (r ≥ 2). By contrast, if she aims at maximizing the expected aggregate effort or the winner's expected effort, she will choose a contest with a pure-strategy equilibrium, and the optimal accuracy level r < 2 decreases in the players' heterogeneity. Finally, a contest designer who faces a tradeoff between selection quality and minimum (maximum) effort will never (may) chose a contest with a semi-mixed equilibrium.
  • Zugangsstatus: Freier Zugang