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Contests with an uncertain number of prizes with a fixed total value

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  • Maublanc, François
  • Rouillon, Sébastien
Abstract
We study multiple-prize contests where the number of prizes to be awarded is a random variable. We identify conditions under which a unique symmetric Nash equilibrium exists. We compare the equilibrium efforts according to different probability distributions of the number of prizes. Considering multi-prize contests proposed so far in the literature, we show that each player’s effort decreases with the average number of prizes (first-order stochastic dominance) and may increase or decrease with the risk in the number of prizes (second-order stochastic dominance) depending on the contest technology adopted.

Suggested Citation

  • Maublanc, François & Rouillon, Sébastien, 2023. "Contests with an uncertain number of prizes with a fixed total value," Mathematical Social Sciences, Elsevier, vol. 121(C), pages 20-25.
    • Handle: RePEc:eee:matsoc:v:121:y:2023:i:c:p:20-25
    DOI: 10.1016/j.mathsocsci.2022.11.001
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