Contests on Networks

Abstract

We develop a model of contests on networks. Each player is “connected” to a set of contests and exerts a single effort to increase the probability of winning each contest to which she is connected. We characterize equilibria under the Tullock contest success function and explore how behavior depends on the pattern of interactions. Additionally, we show that many well-known results from the contest literature can be obtained by varying the structure of the network. Our framework has a broad range of applications, including research and development, advertising, and research funding.

Keywords: Network Games, Contests, Exclusion Principle, Bipartite Graph, Tullock Contest

JEL Classification: C72, D70, D85