Abstract
This paper uses a laboratory experiment to investigate the role of group size in an innovation contest. Subjects compete in a discrete time innovation contest, based on Halac, Kartik, and Liu (2017), where subjects, at the start of each period, are informed of the aggregate number of innovation attempts. I compare two innovation contests, a two-person and four-person contest, that only differ by contest size and have the same probability of obtaining an innovation in equilibrium. The four-person contest results in more innovations and induces more aggregate innovation attempts than the two-person contest. However, there is some evidence that the two-person contest induces more innovation attempts from an individual than the four-person contest.
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