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Fair and Consistent Prize Allocation in Competitions

Author

Listed:
  • Bas J. Dietzenbacher

    (Department of Quantitative Economics, Maastricht University, 6200 MD Maastricht, Netherlands)

  • Aleksei Y. Kondratev

    (HSE University, St. Petersburg 190121, Russia)

Abstract

Given the ranking of competitors, how should the prize endowment be allocated? This paper introduces and axiomatically studies the prize allocation problem. We focus on consistent prize allocation rules satisfying elementary solidarity and fairness principles. In particular, we derive several families of rules satisfying anonymity, order preservation, and endowment monotonicity, which all fall between the equal division rule and the winner-takes-all rule. Our results may help organizers to select the most suitable prize allocation rule for rank-order competitions.

Suggested Citation

  • Bas J. Dietzenbacher & Aleksei Y. Kondratev, 2023. "Fair and Consistent Prize Allocation in Competitions," Management Science, INFORMS, vol. 69(6), pages 3319-3339, June.
    • Handle: RePEc:inm:ormnsc:v:69:y:2023:i:6:p:3319-3339
    DOI: 10.1287/mnsc.2022.4520
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    References listed on IDEAS

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    3. Alcalde-Unzu, Jorge & Gallo, Oihane & Inarra, Elena & Moreno-Ternero, Juan D., 2024. "Solidarity to achieve stability," European Journal of Operational Research, Elsevier, vol. 315(1), pages 368-377.

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