A stochastic derivation of the ratio form of contest success functions
Jia, Hao 2008, A stochastic derivation of the ratio form of contest success functions, Public choice, vol. 135, no. 3-4, pp. 125-130, doi: 10.1007/s11127-007-9242-1.
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A stochastic derivation of the ratio form of contest success functions
This note provides a distribution-based justification for the ratio form of contest success functions (CSFs), in which a player’s success depends positively on her effort relative to that of her opponents. I show that the inverse exponential distribution of the random shocks yields the ratio form. Extending this approach to asymmetric contests, I also derive an asymmetric ratio form of CSFs.
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