Axiomatizing additive multi-effort contests

AbstractA rent seeking model is axiomatized where players exert multiple additive efforts which are substitutable in the contest success function. The axioms assume the sufficiency of exerting one effort, and that adding an amount to one effort and subtracting the same amount from a second equivalent substitutable effort keeps the winning probabilities unchanged. In contrast, the multiplicative Cobb–Douglas production function in the earlier literature requires players to exert all their complementary efforts. The requirement follows from assuming a homogeneity axiom where an equiproportionate change in two players’ matched efforts does not affect the winning probabilities. This article abandons the homogeneity axiom and assumes an alternative axiom where the winning probabilities remain unchanged when a fixed positive amount is added to all players’ efforts. This article also assumes a so-called summation axiom where the winning probabilities remain unchanged when a player substitutes an amount of effort from one effort into another effort. The summation axiom excludes multiplicative production functions, and furnishes a foundation for additive production functions.

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Evaluation of the Imitation Potential of IT Companies Using the Cobb-Douglas Production Function

Vestnik NSUEM ◽

10.34020/2073-6495-2019-4-130-142 ◽

2019 ◽

pp. 130-142

Author(s):

E. N. Akerman ◽

A. A. Mikhalchuk ◽

V. V. Spitsyn ◽

N. O. Chistyakova

Keyword(s):

Production Function ◽

Cluster Model ◽

Production Functions ◽

Production Volume ◽

High Quality ◽

Production Factors ◽

Factor Production ◽

Fixed Assets ◽

Main Factors ◽

Douglas Production Function

The relevance of the study has been determined by the acceleration of innovation growth, which encourages companies to use imitation strategies in response to disruptive technological changes.The study used the Cobb-Douglas production function to evaluate the effectiveness of the used production factors of Russian IT companies. A high-quality 3-cluster model of IT companies was built, as well as highly significant two-factor production functions of Cobb-Douglas, which made it possible to identify the contribution of the main factors (wage and fixed assets) to the production volume (revenue) for each cluster.

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CONSTANT-ELASTICITY-OF-SUBSTITUTION PRODUCTION FUNCTION

Macroeconomic Dynamics ◽

10.1017/s1365100508070302 ◽

2008 ◽

Vol 12 (5) ◽

pp. 694-701 ◽

Cited By ~ 16

Author(s):

Hideki Nakamura ◽

Masakatsu Nakamura

Keyword(s):

Production Function ◽

Capital Accumulation ◽

Specific Form ◽

Production Functions ◽

Elasticity Of Substitution ◽

Intermediate Goods ◽

Constant Elasticity ◽

Constant Elasticity Of Substitution ◽

Douglas Production Function

We consider endogenous changes of inputs from labor to capital in the production of intermediate goods, i.e., a form of mechanization. We derive complementary relationships between capital accumulation and mechanization by assuming a Cobb–Douglas production function for the production of final goods from intermediate goods. A constant-elasticity-of-substitution production function in which the elasticity of substitution exceeds unity can be endogenously derived as the envelope of Cobb–Douglas production functions when the efficiency of inputs is assumed in a specific form. The difficulty of mechanization represents the elasticity of substitution.

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Use of production functions in assessing the profitability of shares of insurance companies

International Journal of Electrical and Computer Engineering (IJECE) ◽

10.11591/ijece.v11i2.pp1539-1548 ◽

2021 ◽

Vol 11 (2) ◽

pp. 1539

Author(s):

Raed Ali Alkhasawneh ◽

Ahmed Mohamed Farhan Mohamed ◽

Samir Abdulwahab Jaradat ◽

M. Sh. Torky ◽

Mutasem K. Alsmadi

Keyword(s):

Production Function ◽

Production Functions ◽

Insurance Companies ◽

Nonlinear Functions ◽

Proposed Model ◽

Factors Of Production ◽

Douglas Production Function

In this study the production functions (Cobb-Douglas, Zener-Rivanker, and the transcendental production function) have been used to assess the profitability of insurance companies, by reformulating these nonlinear functions based on the introduction of a set of variables that contribute to increase the explanatory capacity of the model. Then the best production function commensurate with the nature of the variable representing the profitability of insurance companies was chosen, to use it to assess the efficiency of their profitability versus the use of different factors of production and thus the possibility of using it in forecasting. It was found that the proposed model of the production function "Zener-Rivanker" is the best production functions representing the profitability of the Tawuniya and Bupa Insurance Companies. The proposed model of the Cobb-Douglas production function is suitable for the results of both Enaya and Sanad Cooperative Insurance Companies. The explanatory capacity of the production functions was also increased when the proposed variables were added (net subscribed premiums-net claims incurred).

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ON THE IMPOSSIBILITY OF DETERRENCE IN SEQUENTIAL COLONEL BLOTTO GAMES

International Game Theory Review ◽

10.1142/s0219198912500119 ◽

2012 ◽

Vol 14 (02) ◽

pp. 1250011 ◽

Cited By ~ 3

Author(s):

KJELL HAUSKEN

Keyword(s):

Resource Constraints ◽

Rent Seeking ◽

Contest Success Function ◽

Resource Constrained ◽

Common Ratio ◽

Unit Effort ◽

Success Function ◽

Colonel Blotto ◽

The Common ◽

Colonel Blotto Games

A sequential Colonel Blotto and rent seeking game with fixed and variable resources is analyzed. With fixed resources, which is the assumption in Colonel Blotto games, we show for the common ratio form contest success function that the second mover is never deterred. This stands in contrast to Powell's (Games and Economic Behavior67(2), 611–615) finding where the second mover can be deterred. With variable resources both players exert efforts in both sequential and simultaneous games, whereas fixed resources cause characteristics of all battlefields or rents to impact efforts for each battlefield. With variable resources only characteristics of a given battlefield impact efforts are to win that battlefield because of independence across battlefields. Fixed resources impact efforts and hence differences in unit effort costs are less important. In contrast, variable resources cause differences in unit effort costs to be important. The societal implication is that resource constrained opponents can be expected to engage in warfare, whereas an advantaged player with no resource constraints can prevent warfare.

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A Rent Seeking Experiment with Leakage from the Contest Success Function

Journal of Behavioral and Experimental Economics ◽

10.1016/j.socec.2020.101543 ◽

2020 ◽

Vol 87 ◽

pp. 101543

Author(s):

Lisa R. Anderson ◽

Beth A. Freeborn

Keyword(s):

Rent Seeking ◽

Contest Success Function ◽

Success Function

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Success in contests

Economic Theory ◽

10.1007/s00199-021-01367-4 ◽

2021 ◽

Author(s):

David K. Levine ◽

Andrea Mattozzi

Keyword(s):

Political Economy ◽

Production Function ◽

Theory Of The Firm ◽

Contest Success Function ◽

Existence Of Equilibrium ◽

Success Function

AbstractModels of two contestants exerting effort to win a prize are very common and widely used in political economy. The contest success function plays as fundamental a role in the theory of contests as does the production function in the theory of the firm, yet beyond the existence of equilibrium few general results are known. This paper seeks to remedy that gap.

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Some Characterizations of the Cobb-Douglas and CES Production Functions in Microeconomics

Abstract and Applied Analysis ◽

10.1155/2013/761832 ◽

2013 ◽

Vol 2013 ◽

pp. 1-6 ◽

Cited By ~ 10

Author(s):

Xiaoshu Wang ◽

Yu Fu

Keyword(s):

Differential Geometry ◽

Economic Analysis ◽

Production Function ◽

Production Functions ◽

Euclidean Spaces ◽

Production Possibility ◽

Constant Return ◽

Production Possibility Frontier ◽

Theory Of Production ◽

Douglas Production Function

It is well known that the study of the shape and the properties of the production possibility frontier is a subject of great interest in economic analysis. Vîlcu (Vîlcu, 2011) proved that the generalized Cobb-Douglas production function has constant return to scale if and only if the corresponding hypersurface is developable. Later on, the authors A. D. Vîlcu and G. E. Vîlcu, 2011 extended this result to the case of CES production function. Both results establish an interesting link between some fundamental notions in the theory of production functions and the differential geometry of hypersurfaces in Euclidean spaces. In this paper, we give some characterizations of minimal generalized Cobb-Douglas and CES production hypersurfaces in Euclidean spaces.

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Significance of Experience, Farm Size, Quantity of Propagules and Location f or Seaweed Farmers in the Divided Island of Sebatik

Journal of Business and Economics ◽

10.15341/jbe(2155-7950)/09.09.2018/007 ◽

2018 ◽

Vol 9 (9) ◽

pp. 825-832

Author(s):

James M. Alin ◽

◽

Datu Razali Datu Eranza ◽

Arsiah Bahron ◽

◽

...

Keyword(s):

Regression Analysis ◽

Multiple Regression Analysis ◽

Multiple Regression ◽

Production Function ◽

Weather Conditions ◽

Education Level ◽

Farm Size ◽

Total Production ◽

Explanatory Factors ◽

Douglas Production Function

Seaweed-Kappaphycus-Euchema Cottonii and Denticulum species was first cultivated at Sabah side of Sebatik in 2009. By November 2014, sixty one Sabahan seaweed farmers cultivated 122 ha or 3,050 long lines. Thirty Sabahan seaweed farmers in Kampung Pendekar (3.2 m.t dried) and 31 in Burst Point (12.5 m.t dried) produced 16 metric tonnes of dried seaweed contributed 31% to Tawau’s total production (51 m.t). The remaining 69% were from farmers in Cowie Bay that separates Sebatik from municipality of Tawau. Indonesian in Desa Setabu, Sebatik started in 2008. However, the number of Indonesian seaweed farmers, their cultivated areas and production (as well as quality) in Sebatik increased many times higher and faster than the Sabah side of Sebatik. In 2009 more than 1,401 households in Kabupaten Nunukan (including Sebatik) cultivated over 700 ha and have produced 55,098.95 and 116, 73 m.t dried seaweed in 2010 and 2011 respectively. There is a divergence in productions from farming the sea off the same island under similar weather conditions. Which of the eight explanatory factors were affecting production of seaweeds in Sebatik? Using Cobb Douglas production function, Multiple Regression analysis was conducted on 100 samples (50 Sabahan and 50 Indonesian). Results; Variable significant at α = 0.05% are Experience in farming whereas Farm size; Quantity of propagules and Location — Dummy are the variables significant at α 0.01%. Not significant are variables Fuel; Age; Number of family members involved in farming and Education level.

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