EconPapers    
Economics at your fingertips  
 

A complete-information partnership contest with negative productivity spillovers

Vladimir Petkov

Economics Letters, 2019, vol. 181, issue C, 195-198

Abstract: This note examines a complete-information contest with non-linear rank-order effects. The players’ payoffs incorporate a multiplicative term that allows for negative productivity spillovers. Under certain conditions, our game has a symmetric mixed-strategy equilibrium. To characterize this equilibrium, we adapt a method originally developed for linear settings. We obtain closed-form solutions for the mixing distribution, as well as for the expected efforts and payoffs. The note also explores the implications of negative productivity spillovers for optimal contest design. We show that a planner who seeks to maximize the participants’ expected payoffs may choose interior values for her instruments. We derive simple expressions for these values.

Keywords: Complete-information contests; Non-linear order effects; Mixed-strategy equilibrium (search for similar items in EconPapers)
JEL-codes: C72 M52 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176519301983
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:181:y:2019:i:c:p:195-198

DOI: 10.1016/j.econlet.2019.05.039

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-03-09
Handle: RePEc:eee:ecolet:v:181:y:2019:i:c:p:195-198