All Title Author
Keywords Abstract


Prize Allocation in Contests with Size Effect through Prizes

DOI: 10.4236/tel.2012.22038, PP. 212-215

Keywords: Contest, Prize Allocation, Endogenous Prize Share, Size Effect

Full-Text   Cite this paper   Add to My Lib

Abstract:

We examine prize allocation in contests in which the number of contenders affects prizes. The government allocates a fixed prize between two groups of contenders. The prize share of each group is determined endogenously through the inter-group share contest. Then, the contenders in each group respectively compete for the prize. Examining prize allocation in such contests, we obtain the following results. The contenders expend more resources when they cooperate than when they contribute non-cooperatively in the inter-group share contest. The size effect through prizes increases the prize share of the larger group. The larger group can even obtain the larger share if the size effect through prizes is sufficiently strong.

References

[1]  R. D. Congleton, A. L. Hillman and K. A. Konrad, “40 Years of Research on Rent Seeking 1,” Springer-Verlag, Berlin, 2008. doi:10.1007/978-3-540-79247-5
[2]  K. A. Konrad, “Strategy and Dynamics in Contests,” Oxford University Press, Oxford, 2009.
[3]  S. Lee, “Contests with Size Effects through Costs,” European Journal of Political Economy, Vol. 23, No. 4, 2007, pp. 1190-93. doi:10.1016/j.ejpoleco.2006.08.002
[4]  W. Eggert and M. Kolmar, “Contests with Size Effects,” European Journal of Political Economy, Vol. 22, No. 4, 2006, pp. 989-1008. doi:10.1016/j.ejpoleco.2005.06.005
[5]  E. Katz and J. Tokatlidu, “Group Competition for Rents,” European Journal of Political Economy, Vol. 12, No. 4, 1996, pp. 599-607. doi:10.1016/S0176-2680(96)00027-4
[6]  M. Grad-stein and K. Konrad, “Orchestrating Rent Seeking Contests,” Economic Journal, Vol. 109, 1999, pp. 536-545. doi:10.1111/1468-0297.00461
[7]  M. Gradstein, “Optimal Contest Design: Volume and Timing of Rent Seeking in Con-test,” European Journal of Political Economy, Vol. 14, No. 4, 1998, pp. 575-585. doi:10.1016/S0176-2680(98)00026-3

Full-Text

comments powered by Disqus