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dc.contributor.authorEpstein, Gil S.en_US
dc.contributor.authorMealem, Yosefen_US
dc.contributor.authorNitzan, Shmuelen_US
dc.date.accessioned2011-05-11en_US
dc.date.accessioned2011-06-28T13:55:23Z-
dc.date.available2011-06-28T13:55:23Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/46104-
dc.description.abstractMany economic and political decisions are the outcome of strategic contests for a given prize. The nature of such contests can be determined by a designer who is driven by political considerations with a specific political culture. The main objective of this study is to analyze the effect of political culture and of valuation asymmetry on discrimination between the contestants. The weights assigned to the public well being and the contestants' efforts represent the political culture while discrimination is an endogenous variable that characterizes the mechanism allocating the prize. We consider situations under which the optimal bias of the designer is in favor of the contestant with the larger or smaller prize valuation and examine the effect of changes in the political culture and in valuation asymmetry on the designer's preferred discrimination between the contestants. Focusing on the two most widely studied types of contest success functions (deterministic all-pay-auctions and logit CSFs), we show that an all-pay auction is always the preferred CSF from the point of view of the contest designer. This result provides a new political-economic micro foundation to some of the most commonly used models in the contest literature.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5158en_US
dc.subject.jelH0en_US
dc.subject.ddc330en_US
dc.subject.keywordrent seeking political cultureen_US
dc.subject.keyworddiscriminationen_US
dc.subject.keywordcontestsen_US
dc.subject.keywordlogit contest success functionen_US
dc.subject.keywordall-pay-auctionen_US
dc.subject.stwWettbewerben_US
dc.subject.stwExtensives Spielen_US
dc.subject.stwAuktionstheorieen_US
dc.subject.stwMechanism Designen_US
dc.subject.stwPolitische Kulturen_US
dc.subject.stwRent Seekingen_US
dc.subject.stwDiskriminierungen_US
dc.subject.stwTheorieen_US
dc.titlePolitical culture and discrimination in contestsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn657549711en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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