We propose the use of Nitzan’s (1991) sharing rule in collective contests as a tractable way of modelling individual contests. This proposal (i) tractably introduces noise in Tullock contests when no closed form solution in pure strategies exists, (ii) satisfies the important property of homogeneity of degree zero, (iii) can be effort or noise equivalent to a standard Tullock contest.
|Number of pages||5|
|Early online date||31 Mar 2017|
|Publication status||Published - 1 Jun 2017|
- Homogeneity of degree zero