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Contests With Delegation

Author

Listed:
  • Francesco Trevisan

Abstract

This paper studies winner‐takes‐all Tullock contests between two groups, each formed by a principal and a delegate. Principals allocate the monetary prize within their group, while delegates exert effort to win it. In equilibrium, the more productive delegate receives a smaller prize share while enjoying a higher expected payoff. Nevertheless, delegates' expected payoffs do not monotonically increase with their productivity. As productivity differences get wide enough, delegates' expected payoffs decline and tend to zero. Finally, a more balanced competition raises both delegates' efforts and prize shares, ultimately benefiting delegates' utilitarian welfare.

Suggested Citation

  • Francesco Trevisan, 2026. "Contests With Delegation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 28(1), February.
    • Handle: RePEc:bla:jpbect:v:28:y:2026:i:1:n:e70091
    DOI: 10.1111/jpet.70091
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