A note on multi-winner contest mechanisms

We consider a multi-winner nested elimination contest in which losers are sequentially eliminated to attain the set of winners. This is a variant of a widely used mechanism introduced by Clark and Riis (1996) that allows one to select the winners sequentially. We show that the current mechanism becomes equivalent to the mechanism suggested by Berry (1993) in which the winners are chosen simultaneously

The Equivalence of Contests

We use a Tullock-type contest model to show that intuitively and structurally different contests can be strategically and revenue equivalent to each other. We consider a two-player contest, where outcome-contingent payoffs are linear functions of prizes, own effort, and the effort of the rival. We identify strategically equivalent contests that generate the same family of best response functions and, as a result, the same revenue. However, two strategically equivalent contests may yield different equilibrium payoffs. Finally, we discuss possible contest design applications and avenues for future theoretical and empirical research.rent-seeking, contest, spillover, equivalence, revenue equivalence, contest design

Conflict in the Time of (Post-) Corona: Some Assessments from Behavioral Economics

We present a non-technical assessment of the effects of the COVID-19 pandemic on individual level conflict behavior in the household, workplace, and societal interactions in the post-COVID era. We predict that there will be an increase in the intra-household conflict including domestic violence; and the divorce rate will rise. Within workplaces, the pandemic will result both in a higher level of sabotage among the employees, and employee retaliation towards the employer. The pandemic may also affect the diversity and inclusiveness within an organization adversely. In societal interactions, an increase in the identity related conflicts – especially related to the immigration status – can be observed. It is also likely that there will be an increase in the attack and defense or victimization activities in the society. We conclude by proposing various measures for conflict resolution, and a few possible areas of further investigations

A generalized Tullock contest

We construct a generalized Tullock contest under complete information where contingent upon winning or losing, the payoff of a player is a linear function of prizes, own effort, and the effort of the rival. This structure nests a number of existing contests in the literature and can be used to analyze new types of contests. We characterize the unique symmetric equilibrium and show that small parameter modifications may lead to substantially different types of contests and hence different equilibrium effort levels.rent-seeking, contest, spillover

An experimental investigation of Colonel Blotto games

This article examines behavior in the two-player, constant-sum Colonel Blotto game with asymmetric resources in which players maximize the expected number of battlefields won. The experimental results support all major theoretical predictions. In the auction treatment, where winning a battlefield is deterministic, disadvantaged players use a “guerilla warfare” strategy which stochastically allocates zero resources to a subset of battlefields. Advantaged players employ a “stochastic complete coverage” strategy, allocating random, but positive, resource levels across the battlefields. In the lottery treatment, where winning a battlefield is probabilistic, both players divide their resources equally across all battlefields. -- Dieser Artikel untersucht das Verhalten von Individuen in einem „constant-sum Colonel Blotto“-Spiel zwischen zwei Spielern, bei dem die Spieler mit unterschiedlichen Ressourcen ausgestattet sind und die erwartete Anzahl gewonnener Schlachtfelder maximieren. Die experimentellen Ergebnisse bestätigen alle wichtigen theoretischen Vorhersagen. Im Durchgang, in dem wie in einer Auktion der Sieg in einem Schlachtfeld deterministisch ist, wenden die Spieler, die sich im Nachteil befinden, eine „Guerillataktik“ an, und verteilen ihre Ressourcen stochastisch auf eine Teilmenge der Schlachtfelder. Spieler mit einem Vorteil verwenden eine Strategie der „stochastischen vollständigen Abdeckung“, indem sie zufällig eine positive Ressourcenmenge auf allen Schlachtfeldern positionieren. Im Durchgang, in dem sich der Gewinn eines Schlachtfeldes probabilistisch wie in einer Lotterie bestimmt, teilen beide Spieler ihre Ressourcen gleichmäßig auf alle Schlachtfelder auf.Colonel Blotto,conflict resolution,contest theory,multi-dimensional,resource allocation,rent-seeking,experiments

The hidden perils of affirmative action: Sabotage in handicap contests

Contests are ubiquitous in economic, organizational and political settings. Contest designers often use tools to make a contest among asymmetric contestants more even, in order to either elicit higher effort levels, or for ethical reasons. Handicapping – in which stronger participants are a priori weakened – is one successful tool that is widely used in sports, promotional tournaments and procurement auctions. In this study we show theoretically that participants may also increase their destructive effort, and sabotage their rivals’ performance, when handicapping is employed. We empirically verify this prediction using data on 19,635 U.K. horse-races in 2011 and 2012. Our results suggest that while a level field may be conducive to heightened positive effort in general, in a setting where both handicapping and sabotage are present it also lays the ground for greater destruction

Introduction to the Symposium - Contests: Theory and Evidence

This Symposium consists of five studies in the area of “Contests.” These peer-reviewed papers were among a larger set of research presented at the 2016 conference “Contests: Theory and Evidence” at the University of East Anglia in Norwich, United Kingdom, and represent that research in terms of both the questions raised and the techniques used to address them. (JEL C7, C9, D9).</p