Effort and performance in group contests |
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Authors: | Kofi O. Nti |
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Affiliation: | Smeal College of Business Administration, The Pennsylvania State University, University Park, PA 16802-1913, USA |
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Abstract: | We study contest performance by focusing on the per capita payoffs of the contestants in an important class of asymmetric two-group contests. The group with the higher valuation has a greater chance of winning the contest whenever the rent-seeking technology is increasing and concave. We note that equilibrium efforts and payoffs per capita are uniquely defined and can be subjected to a comparative statics analysis. We show that payoff per capita for a group increases with its own valuation but decreases with the valuation of the opposing group. Per capita payoff for a group increases with its population. |
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Keywords: | Group contests Rent-seeking Asymmetric contests Comparative statics |
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