A Generalization of Berry’s Probability Function ()
Abstract
In a multi-prize contest, we consider the space of all outcomes and define a probability on it by hypothesizing the probability of an outcome to depend on resources expended by all the players. In this probability space, we then derive the probability of an individual player winning. It turns out that this probability is a generalized Berry (1993) probability function. Specifically, when 0 weight is attached to the resources spent by the “unsuccessful players” (losers), the probability of winning of an individual player is proposed exactly by Berry (1993). Such a formulation also helps to alleviate charges against the probability function of Berrylevied by Clark and Riis (1996) in the context of sequential distribution of prizes since prizes by our very hypothesis, are awarded simultaneously.
Share and Cite:
A. Palma and S. Munshi, "A Generalization of Berry’s Probability Function,"
Theoretical Economics Letters, Vol. 3 No. 5B, 2013, pp. 12-16. doi:
10.4236/tel.2013.35A2003.
Conflicts of Interest
The authors declare no conflicts of interest.
References
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[1]
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S. K. Berry, “Rent-seeking with Multiple Winners,” Public Choice, Vol. 77, No. 2, 1993, pp. 437-443.
doi:10.1007/BF01047881
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D. J. Clark and C. Riis, “A Multi-Winner Nested Rent-Seeking Contest,” Public Choice, Vol. 87, No. 1-2, 1996, pp. 177-184.doi:10.1007/BF00151735
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D. J. Clark and C. Riis, “Influence and the discretionary allocation of several prizes,” European Journal of Political Economy, Vol. 14, No. 4, 1998, pp. 605-625.
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