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Dynamic Multiactivity Contests

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  • Maria Arbatskaya
  • Hugo Mialon

Abstract

In many contests, players can influence the outcome through efforts in multiple activities, several of which can be chosen before others. In this paper, we develop a model of dynamic multiactivity contests. Players simultaneously choose efforts in long-run activities, observe each other's efforts in these activities, and then simultaneously choose efforts in short-run activities. A player's long-run and short-run efforts complement each other in determining the player's probability of winning. We compare the outcomes of this two-stage model to those of the corresponding model in which players do not observe each other's first-stage efforts before the second stage and thus effectively choose efforts in all activities simultaneously. Interestingly, effort expenditures are always lower in the sequential multi-activity contest than in the simultaneous multi-activity contest. The implications of this result for the organization of military, litigation, innovation, academic, and sporting contests are highlighted.

Suggested Citation

  • Maria Arbatskaya & Hugo Mialon, 2010. "Dynamic Multiactivity Contests," Emory Economics 1005, Department of Economics, Emory University (Atlanta).
  • Handle: RePEc:emo:wp2003:1005
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    References listed on IDEAS

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    Cited by:

    1. João Ricardo Faria & Franklin G. Mixon, Jr. & Steven B. Caudill & Samantha J. Wineke, 2014. "Two-Dimensional Effort in Patent-Race Games and Rent-Seeking Contests: The Case of Telephony," Games, MDPI, Open Access Journal, vol. 5(2), pages 1-11, May.
    2. Klein, Arnd Heinrich & Schmutzler, Armin, 2017. "Optimal effort incentives in dynamic tournaments," Games and Economic Behavior, Elsevier, vol. 103(C), pages 199-224.
    3. Osório, António (António Miguel), 2018. "Conflict and Competition over Multi-Issues," Working Papers 2072/306550, Universitat Rovira i Virgili, Department of Economics.
    4. Dan Kovencok & Michael J. Mauboussin & Brian Roberson, 2010. "Asymmetric Conflicts with Endogenous Dimensionality," Korean Economic Review, Korean Economic Association, vol. 26, pages 287-305.
    5. Lee, Dongryul, 2012. "Weakest-link contests with group-specific public good prizes," European Journal of Political Economy, Elsevier, vol. 28(2), pages 238-248.

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