Tullock Contest

The Tullock Contest, named after economist Gordon Tullock, refers to a situation where individuals compete for a prize by investing resources, like time or money, to increase their chances of winning. Importantly, the contest is defined by the fact that the winner takes all, meaning only the top competitor receives the reward, while others gain nothing. This leads participants to potentially over-invest in their efforts, driven by the desire to win, often resulting in a wasteful allocation of resources. It highlights the inefficiencies that can arise in competitive situations, emphasizing strategic decision-making in contests.