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We study a contest design problem in which a designer chooses how many Tullock contests to have, how much to award to each contest, and which contestants (of high or low type) should be assigned to which contest. Our main result is that a single grand contest maximizes total effort. We consider...
Persistent link: https://www.econbiz.de/10015181921
We consider a best-of-three Tullock contest between two ex-ante identical players. An effort-maximizing designer commits to a vector of player-specific biases (advantages or disadvantages). In our benchmark model the designer chooses victory-dependent biases (i.e., the biases depend on the...
Persistent link: https://www.econbiz.de/10012918987
Multi-battle team contests are ubiquitous in real-life competitions. All temporal structures of multi-battle team contests yield the same total effort, as demonstrated by Fu, Lu, and Pan (2015, American Economic Review, 105(7): 2120-40)'s remarkable temporal-structure independence. Rather than...
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In sequential contests between ex-ante symmetric players, the outcome of early battles creates an asymmetry in players' incentives to expend resources, which undermines future expenditures. This dynamic force is absent in simultaneous contests, and consequently expenditures in sequential...
Persistent link: https://www.econbiz.de/10012830080
We investigate the temporal structure that maximizes the winner's effort in large homogeneous contests, thus extending Hinnosaar (2019)'s analysis of total effort. We find that the winner's effort ranges from a lower bound of 0 to an upper bound of one third of the value of the prize, depending...
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We study a contest design problem in which a designer chooses how many Tullock contests to have, how much to award to each contest, and which contestants (of high or low type) should be assigned to which contest. Our main result is that a single grand contest maximizes total effort. We consider...
Persistent link: https://www.econbiz.de/10015400928