Winner-pay contests with a no-winner possibility

We study winner-pay Tullock contests with a no-win parameter that reflects the likelihood that nobody will win the contest, in a symmetric model with complete information. We show that in contradiction to standard Tullock contests with a no-win parameter, the increase in the no-win parameter results in higher efforts. Additionally, a no-win parameter will result in lower revenues for the contest designer and lower contestants profits than standard winner-pay contests. We additionally extended our work to the asymmetric case and equivalent contests.