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Journal of Economic Theory and Econometrics
JETEM/계량경제학보/計量經濟學報/JKES
Journal of the Korean Econometric Society

On the Optimal Allocation of Prizes in Contests

Vol.25, No.1, March , 1–12



  •   (Department of Economics, Korea University)

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Abstract  

We characterize the optimal structure of prizes in contests, when the contest designer is interested in the maximization of either the expected total effort or the expected highest effort. The all-pay auction framework in the present paper makes it possible to derive most of the results in Moldovanu and Sela's (2001, American Economic Review, 542-558; 2006, Journal of Economic Theory, 70-96) incomplete-information model of contests in a particularly simple fashion, as well as to obtain new results.


Keywords
   Contests, Optimal structure, Prizes, All-pay auctions

JEL classification codes
   D44, J31, D72, D82
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