TWO-STAGE CONTESTS WITH ADDITIVE CARRYOVERS*

Sanghack Lee

International Economic Journal, 2001, vol. 17, issue 1, 83-99

Abstract: This paper examines two-stage contests in which players in two groups compete for a prize. In the first stage, each group selects a finalist through intra-group competition. In the second stage the finalists compete for the prize. The first-stage efforts are carried over to the second stage through the contest success function and cost functions. The carryover of efforts proves to increase aggregate efforts when the carryovers are player-specific. In the case of group-specific carryovers, however, the aggregate efforts may either increase or decrease in the carryover rates, depending upon the value of the exponent R of the contest success function. [D62, D72, D74]

Date: 2001
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DOI: 10.1080/10168730300080006

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