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Contests with an uncertain number of prizes with a fixed total value

Author

Listed:
  • François Maublanc

    (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

  • Sébastien Rouillon

    (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)

Abstract

We study multiple-prize contests where the number of prizes to be awarded is a random variable. We identify conditions under which a unique symmetric Nash equilibrium exists. We compare the equilibrium efforts according to different probability distributions of the number of prizes. Considering multi-prize contests proposed so far in the literature, we show that each player’s effort decreases with the average number of prizes (first-order stochastic dominance) and may increase or decrease with the risk in the number of prizes (second-order stochastic dominance) depending on the contest technology adopted.
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Suggested Citation

  • François Maublanc & Sébastien Rouillon, 2023. "Contests with an uncertain number of prizes with a fixed total value," Post-Print hal-03898633, HAL.
    • Handle: RePEc:hal:journl:hal-03898633
    DOI: 10.1016/j.mathsocsci.2022.11.001
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    References listed on IDEAS

    as
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