Competing Allocation Rules in Networks∗
نویسنده
چکیده
I examine a model in which two competing groups offer different allocation rules that may depend on the network of connections among the individuals that make up each group. I assume the existence of a single divisible good, such as a monetary prize, to be divided by each group. The probability of winning the prize will depend on the group sizes, but I examine a more general contest function as well. I examine two well known allocation rules: the Myerson value and the egalitarian rule. I prove existence of equilibria and characterize the properties of the two networks. The implications for the outcome of the contest are examined. JEL classification: D85, D74
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