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Divisionalization in contests

Author

Listed:
  • Huck, Steffen
  • Konrad, Kai A.
  • Müller, Wieland

Abstract

To be represented by more than one contestant in a contest has advantages and disadvantages. This paper determines the conditions under which it is favorable to send several agents into the contest.

Suggested Citation

  • Huck, Steffen & Konrad, Kai A. & Müller, Wieland, 2000. "Divisionalization in contests," SFB 373 Discussion Papers 2000,9, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
    • Handle: RePEc:zbw:sfb373:20009
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    References listed on IDEAS

    as
    1. Baik, Kyung Hwan & Kim, In-Gyu, 1997. "Delegation in contests," European Journal of Political Economy, Elsevier, vol. 13(2), pages 281-298, May.
    2. repec:dgr:rugsom:99b47 is not listed on IDEAS
    3. Lambert Schoonbeek, 2002. "A delegated agent in a winner-takes-all contest," Applied Economics Letters, Taylor & Francis Journals, vol. 9(1), pages 21-23.
    4. Ray Rees & Ekkehard Kessner, 1999. "Regulation and efficiency in European insurance markets," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 14(29), pages 364-397.
    5. Baye, Michael R & Crocker, Keith J & Ju, Jiandong, 1996. "Divisionalization, Franchising, and Divestiture Incentives in Oligopoly," American Economic Review, American Economic Association, vol. 86(1), pages 223-236, March.
    6. Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1994. "The Solution to the Tullock Rent-Seeking Game When R Is Greater Than 2: Mixed-Strategy Equilibria and Mean Dissipation Rates," Public Choice, Springer, vol. 81(3-4), pages 363-380, December.
    7. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-290.
    8. Kai A. Konrad & Wolfgang Peters & Karl Wärneryd, 2004. "Delegation in first-price all-pay auctions," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(5), pages 283-290.
    9. Gaudet, Gerard & Salant, Stephen W, 1991. "Increasing the Profits of a Subset of Firms in Oligopoly Models with Strategic Substitutes," American Economic Review, American Economic Association, vol. 81(3), pages 658-665, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Eggert, Wolfgang & Kolmar, Martin, 2006. "Contests with size effects," European Journal of Political Economy, Elsevier, vol. 22(4), pages 989-1008, December.
    2. Castanheira, Micael & Huck, Steffen & Leutgeb, Johannes & Schotter, Andrew, 2023. "How Trump triumphed: Multi-candidate primaries with buffoons," European Economic Review, Elsevier, vol. 157(C).
    3. Joao Carlos Correia Leitao, 2004. "Optimal Divisionalization for Selling Networks of Cable Television Services," Industrial Organization 0403004, University Library of Munich, Germany.
    4. Faulí-Oller, Ramon & Bru, Lluís & de Haro, José-Manuel Ordóñez, 2001. "Divisionalization in Vertical Structures," CEPR Discussion Papers 3011, C.E.P.R. Discussion Papers.
    5. repec:bla:germec:v:8:y:2007:i::p:89-106 is not listed on IDEAS
    6. Oliver Gurtler & Matthias Krakel, 2003. "Who is declared dead lives longer," Applied Economics Letters, Taylor & Francis Journals, vol. 10(15), pages 995-997.
    7. Akio Kawasaki & Takao Ohkawa & Makoto Okamura, 2019. "Inter-group competition through joint marketing efforts and intra-group Cournot competition," Journal of Economics, Springer, vol. 128(3), pages 203-224, December.
    8. Konrad, Kai A., 2006. "Silent interests and all-pay auctions," International Journal of Industrial Organization, Elsevier, vol. 24(4), pages 701-713, July.
    9. Gürtler Oliver, 2007. "A Rationale for the Coexistence of Central and Decentral Marketing in Team Sports," German Economic Review, De Gruyter, vol. 8(1), pages 89-106, February.
    10. Steffen Huck & Kai A. Konrad & Wieland Müller, 2002. "Merger and Collusion in Contests," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 158(4), pages 563-575, December.
    11. Amegashie, J.A. & Myers, G.M., 2003. "Financing Public Goods Via Lotteries," Working Papers 2003-1, University of Guelph, Department of Economics and Finance.
    12. Matthias Kräkel, 2004. "R&D spillovers and strategic delegation in oligopolistic contests," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 147-156.

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    More about this item

    Keywords

    contests; Divisionalization; delegation;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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