Endogenous contest success functions: a mechanism design approach

B-Tier
Journal: Economic Theory
Year: 2013
Volume: 52
Issue: 1
Pages: 271-297

Authors (2)

Leonid Polishchuk (Indiana University) Alexander Tonis (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We describe optimal contest success functions (CSF) which maximize expected revenues of an administrator who allocates under informational asymmetry a source of rent among competing bidders. It is shown that in the case of independent private values rent administrator’s optimal mechanism can always be implemented via some CSFs as posited by Tullock. Optimal endogenous CSFs have properties which are often assumed a priori as plausible features of rent-seeking contests; the paper therefore validates such assumptions for a broad class of contests. Various extensions or optimal CSFs are analyzed. Copyright Springer-Verlag 2013

Technical Details

RePEc Handle
repec:spr:joecth:v:52:y:2013:i:1:p:271-297
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29