Abstract
We study all-pay contests with complete information and two heterogeneous contestants who compete for a single prize. We combine two common designer's goals which are combined especially in sports contests; effort maximization and competitive balance. We focus on two cases when the designer's utility is either continuous or discontinuous in the contestants' efforts. We show that a maximum effort constraint is always efficient for increasing the designer's utility, namely, effort maximization under competitive balance.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.