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"Small, yet beautiful": Reconsidering the optimal design of multi-winner contests

Author

Listed:
  • Subhasish Modak Chowdhury

    (University of East Anglia)

  • Sang-Hyun Kim

    (University of East Anglia)

Abstract

We reconsider whether a grand multi-winner contest elicits more equilibrium effort than a collection of sub-contests. Fu and Lu (2009) employ a sequential winner-selection mechanism and find support for running a grand contest. We show that this result is completely reversed if a simultaneous winner-selection mechanism or a sequential loser-elimination mechanism is implemented. We then discuss the optimal allocation of players and prizes among sub-contests, and the case in which there is restriction in the number of sub-contests.

Suggested Citation

  • Subhasish Modak Chowdhury & Sang-Hyun Kim, 2015. ""Small, yet beautiful": Reconsidering the optimal design of multi-winner contests," University of East Anglia School of Economics Working Paper Series 2015-05, School of Economics, University of East Anglia, Norwich, UK..
    • Handle: RePEc:uea:ueaeco:2015_05
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    References listed on IDEAS

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    1. Chowdhury, Subhasish M. & Kim, Sang-Hyun, 2014. "A note on multi-winner contest mechanisms," Economics Letters, Elsevier, vol. 125(3), pages 357-359.
    2. Benny Moldovanu & Aner Sela, 2008. "The Optimal Allocation of Prizes in Contests," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 615-631, Springer.
    3. Clark, Derek J & Riis, Christian, 1996. "A Multi-winner Nested Rent-Seeking Contest," Public Choice, Springer, vol. 87(1-2), pages 177-184, April.
    4. Shmuel Nitzan, 2008. "Collective Rent Dissipation," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 309-321, Springer.
    5. Fu, Qiang & Lu, Jingfeng, 2009. "The beauty of "bigness": On optimal design of multi-winner contests," Games and Economic Behavior, Elsevier, vol. 66(1), pages 146-161, May.
    6. Moldovanu, Benny & Sela, Aner, 2006. "Contest architecture," Journal of Economic Theory, Elsevier, vol. 126(1), pages 70-96, January.
    7. Berry, S Keith, 1993. "Rent-Seeking with Multiple Winners," Public Choice, Springer, vol. 77(2), pages 437-443, October.
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    Cited by:

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    2. Czerny, Achim I. & Fosgerau, Mogens & Jost, Peter-J. & van Ommeren, Jos N., 2019. "Why pay for jobs (and not for tasks)?," Journal of Economic Behavior & Organization, Elsevier, vol. 168(C), pages 419-433.
    3. Subhasish M. Chowdhury & Patricia Esteve‐González & Anwesha Mukherjee, 2023. "Heterogeneity, leveling the playing field, and affirmative action in contests," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 924-974, January.
    4. Lu, Jingfeng & Shen, Bo & Wang, Zhewei, 2017. "Optimal contest design under reverse-lottery technology," Journal of Mathematical Economics, Elsevier, vol. 72(C), pages 25-35.
    5. Lepp l , Samuli, 2018. "Partial Exclusivity Can Resolve The Empirical Puzzles Associated With Rent-Seeking Activities," Cardiff Economics Working Papers E2018/25, Cardiff University, Cardiff Business School, Economics Section.
    6. Philip Brookins & Paan Jindapon, 2025. "Contest divisioning," Review of Economic Design, Springer;Society for Economic Design, vol. 29(3), pages 635-658, September.
    7. Spencer Bastani & Thomas Giebe & Oliver Gürtler, 2019. "A General Framework for Studying Contests," CESifo Working Paper Series 7993, CESifo.
    8. Yildirim, Mustafa, 2023. "When does division matter? Revisiting the optimal contest architecture," Economics Letters, Elsevier, vol. 230(C).
    9. Subhasish M. Chowdhury & Anastasia Danilov & Martin G. Kocher, 2023. "The Lifecycle of Affirmative Action Policies and Its Effect on Effort and Sabotage Behavior," Working Papers 2023012, The University of Sheffield, Department of Economics.
    10. Subhasish M. Chowdhury & Anwesha Mukherjee & Theodore L. Turocy, 2025. "And the first runner-up is...: comparing winner selection procedures in multi-winner Tullock contests," Review of Economic Design, Springer;Society for Economic Design, vol. 29(3), pages 447-477, September.

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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