Multi-activity contests |
| |
Authors: | Maria Arbatskaya Hugo M Mialon |
| |
Institution: | (1) Department of Economics, Florida State University, Tallahassee, FL 32308, USA |
| |
Abstract: | In many contests, players can influence their chances of winning through multiple activities or “arms”. We develop a model
of multi-armed contests and axiomatize its contest success function. We then analyze the outcomes of the multi-armed contest
and the effects of allowing or restricting arms. Restricting an arm increases total effort directed to other arms if and only
if restricting the arm balances the contest. Restricting an arm tends to reduce rent dissipation because it reduces the discriminatory
power of the contest. But it also tends to increase rent dissipation if it balances the contest. Less rent is dissipated if
an arm is restricted as long as no player is excessively stronger than the other with that arm. If players are sufficiently
symmetric in an arm, both players are better off if that arm is restricted. Nevertheless, players cannot agree to restrict
the arm if their costs of using the arm are sufficiently low. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|