Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/31215 
Year of Publication: 
2005
Series/Report no.: 
Discussion Paper No. 1410
Publisher: 
Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science, Evanston, IL
Abstract: 
In models of non-deterministic contest, players exert irreversible effort in order to increase their probability of winning a prize. The most prominent functional form of the win probability in the literature is the so-called logit” contest success function. We provide a simple micro-foundation of this function for the two contestant case. In this setting the contest administrator is a rational decision maker whose optimal choice is deterministic. However, from the point of view of the contestants the outcome of the contest is probabilistic because of an underlying uncertainty about the type of the administrator.
Subjects: 
Contests
contest success function
effort levels
endogenous contest
JEL: 
C72
D72
D74
Document Type: 
Working Paper

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