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Effort Complementarity and Sharing Rules in Group Contests

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Listed:
  • Hideo Konishi

    (Boston College)

  • Katsuya Kobayashi

    (Hosei University)

Abstract

In this paper, we consider a prize-sharing rule design problem in a group contest with effort complementarities within groups by employing a CES effort aggregator function. We derive the conditions for a monopolization rule that dominates an egalitarian rule if the objective of the rule design is to maximize the group's winning probability. We find conditions under which the monopolization rule maximizes the group's winning probability, while the egalitarian rule is strictly preferred by all members of the group. Without effort complementarity, there cannot be such a conflict of interest.

Suggested Citation

  • Hideo Konishi & Katsuya Kobayashi, 2020. "Effort Complementarity and Sharing Rules in Group Contests," Boston College Working Papers in Economics 1024, Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:1024
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    References listed on IDEAS

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    1. Jay Pil Choi & Subhasish M. Chowdhury & Jaesoo Kim, 2016. "Group Contests with Internal Conflict and Power Asymmetry," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(4), pages 816-840, October.
    2. Kolmar, Martin & Rommeswinkel, Hendrik, 2013. "Contests with group-specific public goods and complementarities in efforts," Journal of Economic Behavior & Organization, Elsevier, vol. 89(C), pages 9-22.
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    7. Nitzan, Shmuel & Ueda, Kaoru, 2011. "Prize sharing in collective contests," European Economic Review, Elsevier, vol. 55(5), pages 678-687, June.
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    10. Shmuel Nitzan & Kaoru Ueda, 2014. "Intra-group heterogeneity in collective contests," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 43(1), pages 219-238, June.
    11. Kaoru Ueda, 2002. "Oligopolization in collective rent-seeking," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(3), pages 613-626.
    12. Gil Epstein & Yosef Mealem, 2009. "Group specific public goods, orchestration of interest groups with free riding," Public Choice, Springer, vol. 139(3), pages 357-369, June.
    13. Crutzen, Benoît S Y & Flamand, Sabine & Sahuguet, Nicolas, 2020. "A model of a team contest, with an application to incentives under list proportional representation," Journal of Public Economics, Elsevier, vol. 182(C).
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    Cited by:

    1. Daniel Cardona & Jenny Freitas & Antoni Rubí-Barceló, 2023. "Polarization and conflict among groups with heterogeneous members," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(1), pages 199-219, July.
    2. Dhritiman Gupta, 2023. "Prize sharing rules in collective contests: when do social norms matter?," Review of Economic Design, Springer;Society for Economic Design, vol. 27(1), pages 221-244, February.

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    More about this item

    Keywords

    group contest; complementarity in efforts; free riding; prize sharing rule;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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