The rent-seeking contest theory of Tullock has been deriving a lot of studies on competitions between individuals and/or groups in various settings. Among them, we reviews several works that examine Tullock group contests with group-specific public-good prizes in order to enhance our understanding about the effect of the degree of substitution or complementarity between members in a group on their effort incentives for their group’s winning. We also reviews studies on the optimal degree of substitution (complementarity) that maximizes the objective function of a contest organizer and group members’ payoffs, respectively, and endogenous formation of groups in Tullock contest setting as well. This paper may provide helpful knowledge and information that can be referred to design solutions for alleviating wasteful resources spent on rent-seeking behavior in our society.
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