Effort and performance in group contests

Abstract

We study contest performance by focusing on the per capita payoffs of the contestants in an important class of asymmetric two-group contests. The group with the higher valuation has a greater chance of winning the contest whenever the rent-seeking technology is increasing and concave. We note that equilibrium efforts and payoffs per capita are uniquely defined and can be subjected to a comparative statics analysis. We show that payoff per capita for a group increases with its own valuation but decreases with the valuation of the opposing group. Per capita payoff for a group increases with its population.