Skip navigation
Skip navigation

Risk Aversion, Heterogeneity and Contests

Cornes, Richard; Hartley, Roger


We introduce a novel method of modelling contests that avoids the complexities encountered by the 'best response function' approach. We analyse contests in which (i) there are many risk averse players, (ii) attitudes to risk may differ across individuals, and (iii) the technology that transforms rent-seeking effort into probability of winning may also differ across individuals. We establish that, if every player has a constant degree of absolute risk aversion, a unique equilibrium exists. We...[Show more]

CollectionsANU Research Publications
Date published: 2003
Type: Journal article
Source: Public Choice
DOI: 10.1023/A:1026136008608


File Description SizeFormat Image
01_Cornes_Risk_Aversion,_Heterogeneity_2003.pdf160.7 kBAdobe PDF    Request a copy

Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  23 August 2018/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator