Who is declared dead lives longer
We consider a contest between a small and a large team. On the one hand, the large team has the advantage of more people exerting effort (quantity effect). On the other hand, the large team suffers from more free riding (free-riding effect). The results show that - depending on the convexity of the cost function - the small team will have a higher probability of winning the contest, if the free-rider effect dominates the quantity effect. Moreover, even if the large team has a higher winning probability, an individual player prefers to belong to the small team.
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Volume (Year): 10 (2003)
Issue (Month): 15 ()
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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.:
- Nitzan, Shmuel, 1991. "Collective Rent Dissipation," Economic Journal, Royal Economic Society, vol. 101(409), pages 1522-1534, November.
- Gradstein, Mark & Konrad, Kai A, 1999. "Orchestrating Rent Seeking Contests," Economic Journal, Royal Economic Society, vol. 109(458), pages 536-545, October.
- Huck, Steffen & Konrad, Kai A. & Muller, Wieland, 2001.
"Divisionalization in contests,"
Elsevier, vol. 70(1), pages 89-93, January.
- Stergios Skaperdas, 1996.
"Contest success functions (*),"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-290.
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