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Step-by-step group contests with group-specific public-good prizes

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  • Katsuya Kobayashi

    (Hosei University)

Abstract

The achievements reached by group members’ effort, which accompanies the possibility of members’ free-riding, affect the outcomes of competition among groups. In some cases, each achievement has the binary characteristic of “one or nothing.” For example, research groups face the challenge of making a scientific finding or not. The groups compete for a scientific breakthrough by making the related findings in a “step-by-step” manner. One finding could fail because of a mistake caused by a slight lack of effort by one member. Such a characteristic of “one or nothing” motivates group members without any incentive scheme. This study analyzes group contests with group-specific public-good prizes, in which we introduce a step function with the characteristics of “one or nothing” and “step-by-step” as a group impact function. We show the existence of the Nash equilibrium at which no group member free-rides on the others and at which more achievements than those reachable by a single member are reached.

Suggested Citation

  • Katsuya Kobayashi, 2019. "Step-by-step group contests with group-specific public-good prizes," Economics of Governance, Springer, vol. 20(2), pages 183-204, June.
    • Handle: RePEc:spr:ecogov:v:20:y:2019:i:2:d:10.1007_s10101-019-00224-4
    DOI: 10.1007/s10101-019-00224-4
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    More about this item

    Keywords

    Step-by-step technology; Group contest; Group-specific public good;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions

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