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Dynamic Multiactivity Contests

  • Maria Arbatskaya
  • Hugo Mialon

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.

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Paper provided by Department of Economics, Emory University (Atlanta) in its series Emory Economics with number 1005.

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Date of creation: Jul 2010
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Handle: RePEc:emo:wp2003:1005
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