We reconsider whether a grand multi-winner contest elicits more equilibrium effort than a collection of sub-contests. Fu and Lu (2009) employ a sequential winner-selection mechanism and find support for running a grand contest. We show that this result is completely reversed if a simultaneous winner-selection mechanism or a sequential loser-elimination mechanism is implemented. We then discuss the optimal allocation of players and prizes among sub-contests.
|Number of pages||8|
|Journal||Games and Economic Behavior|
|Early online date||3 Jun 2017|
|Publication status||Published - 1 Jul 2017|
- contest design
- multiple winner
- selection mechanism