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Extractive contest design

Tomohiko Kawamori

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Abstract: We consider contest success functions (CSFs) that extract contestants' prize values. In the common-value case, there exists a CSF extractive in any equilibrium. In the observable-private-value case, there exists a CSF extractive in some equilibrium; there exists a CSF extractive in any equilibrium if and only if the number of contestants is greater than or equal to three or the values are homogeneous. In the unobservable-private-value case, there exists no CSF extractive in some equilibrium. When extractive CSFs exist, we explicitly present one of them.

Date: 2020-06, Revised 2022-07
New Economics Papers: this item is included in nep-des and nep-mic
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