Affirmative action in contest games
This paper analyzes the incentive effects of affirmative action in competitive environments. Competition is between heterogeneous players in a contest game where heterogeneity might be due to past discrimination. Two policy options are analyzed that tackle the underlying asymmetry: either it is ignored and the contestants are treated equally, or affirmative action is implemented to neutralize the disadvantages of discriminated players. Comparing the induced effort exertion under the two policies reveals that in a two-player contest game the normative neutralization objective of affirmative action coincides with higher effort exertion. However, in the multi-player contest affirmative action might have adverse incentive effects as the participation of additional weak players detrimentally affects effort incentives of other players. These results also obtain under imperfect information of the contest organizer.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Skaperdas, Stergios, 1996.
"Contest Success Functions,"
Springer, vol. 7(2), pages 283-90, February.
- Lundberg, S. & Startz, R., 1992.
"On the Persistence of Racial Inequality,"
Discussion Papers in Economics at the University of Washington
92-04, Department of Economics at the University of Washington.
- Lundberg, S.J.Startz, R., 1994. "On the Persistence of Racial Inequality," Discussion Papers in Economics at the University of Washington 94-07, Department of Economics at the University of Washington.
- Lundberg, S.J.Startz, R., 1994. "On the Persistence of Racial Inequality," Working Papers 94-07, University of Washington, Department of Economics.
- Lundberg, S. & Startz, R., 1992. "On the Persistence of Racial Inequality," Working Papers 92-04, University of Washington, Department of Economics.
- Moldovanu, Benny & Sela, Aner, 1999.
"The Optimal Allocation of Prizes in Contests,"
Sonderforschungsbereich 504 Publications
99-75, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Edward P. Lazear & Sherwin Rosen, 1979.
"Rank-Order Tournaments as Optimum Labor Contracts,"
NBER Working Papers
0401, National Bureau of Economic Research, Inc.
- Kranich, Laurence, 1994. "Equal Division, Efficiency, and the Sovereign Supply of Labor," American Economic Review, American Economic Association, vol. 84(1), pages 178-89, March.
- Roland G. Fryer, Jr. & Glenn C. Loury, 2005.
"Affirmative Action and Its Mythology,"
NBER Working Papers
11464, National Bureau of Economic Research, Inc.
- Konrad, Kai A., 2001.
"Investment in the absence of property rights: the role of incumbency advantages
[Investitionsanreize bei unvollständigen Eigentumsrechten: die Rolle von Asymmetrien in Aneignungskonflikten]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 01-18, Social Science Research Center Berlin (WZB).
- Konrad, Kai A., 2002. "Investment in the absence of property rights; the role of incumbency advantages," European Economic Review, Elsevier, vol. 46(8), pages 1521-1537, September.
- Kai A. Konrad, 2002. "Investment in the Absence of Property Rights: The Role of Incumbency Advantages," CESifo Working Paper Series 698, CESifo Group Munich.
- Konrad, Kai A., 2001. "Investment in the Absence of Property Rights: The Role of Incumbency Advantages," CEPR Discussion Papers 3050, C.E.P.R. Discussion Papers.
- James Fain, 2009.
"Affirmative Action Can Increase Effort,"
Journal of Labor Research,
Springer, vol. 30(2), pages 168-175, June.
- Robert Ritz, 2008. "Influencing rent-seeking contests," Public Choice, Springer, vol. 135(3), pages 291-300, June.
- Froeb, Luke M & Kobayashi, Bruce H, 1996. "Naive, Biased, Yet Bayesian: Can Juries Interpret Selectively Produced Evidence?," Journal of Law, Economics and Organization, Oxford University Press, vol. 12(1), pages 257-76, April.
- Marion, Justin, 2007. "Are bid preferences benign? The effect of small business subsidies in highway procurement auctions," Journal of Public Economics, Elsevier, vol. 91(7-8), pages 1591-1624, August.
- Jimmy Chan & Erik Eyster, 2003. "Does Banning Affirmative Action Lower College Student Quality?," American Economic Review, American Economic Association, vol. 93(3), pages 858-872, June.
- Harry Holzer & David Neumark, 1999.
"Assessing Affirmative Action,"
NBER Working Papers
7323, National Bureau of Economic Research, Inc.
- Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603, July.
- Qiang Fu, 2006. "A Theory of Affirmative Action in College Admissions," Economic Inquiry, Western Economic Association International, vol. 44(3), pages 420-428, July.
- Richard Cornes & Roger Hartley, 2005.
"Asymmetric contests with general technologies,"
Springer, vol. 26(4), pages 923-946, November.
- Clark, Derek J. & Riis, Christian, 2000. "Allocation efficiency in a competitive bribery game," Journal of Economic Behavior & Organization, Elsevier, vol. 42(1), pages 109-124, May.
- Elena Krasnokutskaya & Katja Seim, 2011. "Bid Preference Programs and Participation in Highway Procurement Auctions," American Economic Review, American Economic Association, vol. 101(6), pages 2653-86, October.
- Hao Jia, 2008. "A stochastic derivation of the ratio form of contest success functions," Public Choice, Springer, vol. 135(3), pages 125-130, June.
- Stein, William E, 2002. " Asymmetric Rent-Seeking with More Than Two Contestants," Public Choice, Springer, vol. 113(3-4), pages 325-36, December.
- Hanming Fang & Andrea Moro, 2010. "Theories of Statistical Discrimination and Affirmative Action: A Survey," NBER Working Papers 15860, National Bureau of Economic Research, Inc.
- Gradstein, Mark & Konrad, Kai A, 1999. "Orchestrating Rent Seeking Contests," Economic Journal, Royal Economic Society, vol. 109(458), pages 536-45, October.
- Caterina Calsamiglia, 2009. "Decentralizing Equality Of Opportunity," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(1), pages 273-290, 02.
- Runkel, Marco, 2006. "Total effort, competitive balance and the optimal contest success function," European Journal of Political Economy, Elsevier, vol. 22(4), pages 1009-1013, December.
- Mark Gradstein, 1995. "Intensity Of Competition, Entry And Entry Deterrence In Rent Seeking Contests," Economics and Politics, Wiley Blackwell, vol. 7(1), pages 79-91, 03.
- Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
- Andrew Schotter & Keith Weigelt, 1992. "Asymmetric Tournaments, Equal Opportunity Laws, and Affirmative Action: Some Experimental Results," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 511-539.
- Nti, Kofi O., 2004. "Maximum efforts in contests with asymmetric valuations," European Journal of Political Economy, Elsevier, vol. 20(4), pages 1059-1066, November.
When requesting a correction, please mention this item's handle: RePEc:eee:poleco:v:28:y:2012:i:1:p:105-118. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.