Sign in
Population Uncertainty in Contests
Journal article   Peer reviewed

Population Uncertainty in Contests

Roger B. Myerson and Karl Wärneryd
Economic Theory, Vol.27(2), pp.469-474
2006-02

Abstract

Contests Population uncertainty C72 D44 D72 D82 K41
We study contests where the set of players is a random variable. If it is known for certain that there will be at least one participant, then aggregate contest expenditure in equilibrium is strictly lower in a contest with population uncertainty than in a non-uncertain contest with the same expected number of players. This suggests an explanation of, for example, why empirical studies show rent-seeking expenditures to be much lower than predicted by other theories.

Metrics

Details