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Effort complementarity and sharing rules in group contests

Author

Listed:
  • Katsuya Kobayashi

    (Hosei University)

  • Hideo Konishi

    (Boston College)

Abstract

In this paper, we consider a prize-sharing rule design problem in a group contest with effort complementarities within groups by employing a CES effort aggregator function. We derive the conditions for a monopolization rule that dominates an egalitarian rule if the objective of the rule design is to maximize the group’s winning probability. We find conditions under which the monopolization rule maximizes the group’s winning probability, while the egalitarian rule is strictly preferred by all members of the group. Without effort complementarity, there cannot be such a conflict of interest.

Suggested Citation

  • Katsuya Kobayashi & Hideo Konishi, 2021. "Effort complementarity and sharing rules in group contests," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 56(2), pages 205-221, February.
    • Handle: RePEc:spr:sochwe:v:56:y:2021:i:2:d:10.1007_s00355-020-01277-9
    DOI: 10.1007/s00355-020-01277-9
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    Cited by:

    1. Daniel Cardona & Jenny Freitas & Antoni Rubí-Barceló, 2023. "Polarization and conflict among groups with heterogeneous members," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 61(1), pages 199-219, July.
    2. Dhritiman Gupta, 2023. "Prize sharing rules in collective contests: when do social norms matter?," Review of Economic Design, Springer;Society for Economic Design, vol. 27(1), pages 221-244, February.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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