Optimal Contest Design: A General Approach

Speaker
Igor Letina
Date
13/04/2021 - 12:45 - 11:30Add To Calendar 2021-04-13 11:30:00 2021-04-13 12:45:00 Optimal Contest Design: A General Approach Joint with Shuo Liu (Guanghua School of Management, Peking University ) and Nick Netzer (University of Zurich).  Abstract: We consider the design of contests for n agents when the principal can choose both the prize profile and the contest success function. Our framework includes Tullock contests, Lazear-Rosen tournaments and all-pay contests as special cases, among others. We show that the optimal contest has an intermediate degree of competitiveness in the contest success function, and a minimally competitive prize profile with n−1 identical prizes. The optimum can be achieved with a nested Tullock contest. We extend the model to allow for imperfect performance measurement and for heterogeneous agents. We relate our results to a recent literature which has asked similar questions but has typically focused on the design of either the prize profile or the contest success function.  https://www.igorletina.com/ Link to the paper: https://edit.cms.unibe.ch/unibe/portal/fak_wiso/b_dep_vwl/a_inst_vwl/content/e195818/e195991/e556277/e965461/dp2011_ger.pdf?preview=preview Schedule (Israel time): 11:30 - 11:45 - Gathering and free talk 11:45-12:45 - research presentation To view the seminar recording, click here.   https://us02web.zoom.us/j/82536086839 אוניברסיטת בר-אילן - Department of Economics Economics.Dept@mail.biu.ac.il Asia/Jerusalem public
Place
https://us02web.zoom.us/j/82536086839
Affiliation
University of Bern & CEPR
Abstract

Joint with Shuo Liu (Guanghua School of Management, Peking University ) and Nick Netzer (University of Zurich). 

Abstract: We consider the design of contests for n agents when the principal can choose both the prize profile and the contest success function. Our framework includes Tullock contests, Lazear-Rosen tournaments and all-pay contests as special cases, among others. We show that the optimal contest has an intermediate degree of competitiveness in the contest success function, and a minimally competitive prize profile with n−1 identical prizes. The optimum can be achieved with a nested Tullock contest. We extend the model to allow for imperfect performance measurement and for heterogeneous agents. We relate our results to a recent literature which has asked similar questions but has typically focused on the design of either the prize profile or the contest success function. 

https://www.igorletina.com/
Link to the paper: https://edit.cms.unibe.ch/unibe/portal/fak_wiso/b_dep_vwl/a_inst_vwl/content/e195818/e195991/e556277/e965461/dp2011_ger.pdf?preview=preview

Schedule (Israel time):

11:30 - 11:45 - Gathering and free talk

11:45-12:45 - research presentation

To view the seminar recording, click here.

 

Last Updated Date : 13/04/2021