Discrimination in a model of contests with incomplete information about ability

We study contests with private information and identical contestants, where contestants' efforts and innate abilities generate output of varying qualities. The designer's revenue depends on the quality of the output, and she offers a reward to the contestant achieving the highest quality....

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Detalles Bibliográficos
Autores: Pérez Castrillo, David|||0000-0002-1840-7621, Wettstein, David
Tipo de recurso: artículo
Fecha de publicación:2016
País:España
Institución:Universitat Autònoma de Barcelona
Repositorio:Dipòsit Digital de Documents de la UAB
Idioma:inglés
OAI Identifier:oai:ddd.uab.cat:171310
Acceso en línea:https://ddd.uab.cat/record/171310
https://dx.doi.org/urn:doi:10.1111/iere.12179
Access Level:acceso abierto
Palabra clave:Contests
Auctions
Discrimination
Descripción
Sumario:We study contests with private information and identical contestants, where contestants' efforts and innate abilities generate output of varying qualities. The designer's revenue depends on the quality of the output, and she offers a reward to the contestant achieving the highest quality. We characterize the equilibrium behavior, outcomes, and payoffs for both nondiscriminatory and discriminatory (where the reward is contestant-dependent) contests. We derive conditions under which the designer obtains a larger payoff when using a discriminatory contest and describe settings, where these conditions are satisfied.