Buchanan meets Tullock: aid, contests, and the Samaritan’s Dilemma

Abstract We analyze the potentially dysfunctional role of altruistic third parties in competitions and conflicts. We build a model in which two Contestants engage in a Tullock contest, each receiving support from a distinct altruistic third party (a Samaritan). In a setting where the Contestants’ and Samaritans’ investments are technological substitutes, we show that the Samaritans’ altruism may create disincentive problems, inducing Contestants to free-ride on their help. This Samaritan’s dilemma, in turn, may increase conflict intensity and reduce social welfare.