Share This Article:

Prize Allocation in Contests with Size Effect through Prizes

Abstract Full-Text HTML XML Download Download as PDF (Size:144KB) PP. 212-215
DOI: 10.4236/tel.2012.22038    6,012 Downloads   8,836 Views   Citations


We examine prize allocation in contests in which the number of contenders affects prizes. The government allocates a fixed prize between two groups of contenders. The prize share of each group is determined endogenously through the inter-group share contest. Then, the contenders in each group respectively compete for the prize. Examining prize allocation in such contests, we obtain the following results. The contenders expend more resources when they cooperate than when they contribute non-cooperatively in the inter-group share contest. The size effect through prizes increases the prize share of the larger group. The larger group can even obtain the larger share if the size effect through prizes is sufficiently strong.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

S. Lee and S. Lee, "Prize Allocation in Contests with Size Effect through Prizes," Theoretical Economics Letters, Vol. 2 No. 2, 2012, pp. 212-215. doi: 10.4236/tel.2012.22038.


[1] R. D. Congleton, A. L. Hillman and K. A. Konrad, “40 Years of Research on Rent Seeking 1,” Springer-Verlag, Berlin, 2008. doi:10.1007/978-3-540-79247-5
[2] K. A. Konrad, “Strategy and Dynamics in Contests,” Oxford University Press, Oxford, 2009.
[3] S. Lee, “Contests with Size Effects through Costs,” European Journal of Political Economy, Vol. 23, No. 4, 2007, pp. 1190-93. doi:10.1016/j.ejpoleco.2006.08.002
[4] W. Eggert and M. Kolmar, “Contests with Size Effects,” European Journal of Political Economy, Vol. 22, No. 4, 2006, pp. 989-1008. doi:10.1016/j.ejpoleco.2005.06.005
[5] E. Katz and J. Tokatlidu, “Group Competition for Rents,” European Journal of Political Economy, Vol. 12, No. 4, 1996, pp. 599-607. doi:10.1016/S0176-2680(96)00027-4
[6] M. Grad-stein and K. Konrad, “Orchestrating Rent Seeking Contests,” Economic Journal, Vol. 109, 1999, pp. 536-545. doi:10.1111/1468-0297.00461
[7] M. Gradstein, “Optimal Contest Design: Volume and Timing of Rent Seeking in Con-test,” European Journal of Political Economy, Vol. 14, No. 4, 1998, pp. 575-585. doi:10.1016/S0176-2680(98)00026-3

comments powered by Disqus

Copyright © 2019 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.