Rent-seeking with asymmetric valuations

This paper analyzes Tullock's rent-seeking game with asymmetric valuations for a variable range of the returns to scale parameter. A necessary and suf ficient condition for a unique pure strategy Nash equilibrium is establishe d. Equilibrium effort and expected profits are determined and subjected to comparative statics analysis. Increasing the underdog's valuation induces b oth players to increase their efforts. Increasing the favorite's valuation increases his effort but decreases the effort of the underdog. Expected pro fits increase with a player's valuation but decreases with the valuation of the competitor. The impact of the returns to scale parameter is also analy zed.