Participation, Contribution and Distribution in Parallel Contests

Résumé du livre

In parallel contests, the contest organizer is able to steer the entry of heterogeneous contestants by determining the prize distribution between the contests and regulating the access to the contests. Regulations can prevent contestants from entering multiple contests. We show in this article that the organizer faces a trade-off between maximizing the individual efforts and maximizing the aggregate efforts. Moreover, the organizer cannot attract high types by offering a relatively large prize in a contest. We also discover spillover effects between contests in the presence of restrictive entry regulations. The individual (aggregate) effort increases (decreases) in a contest if the prize in a neighboring contest is increased.