American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Disclosure and Favoritism in Sequential Elimination Contests
American Economic Journal: Microeconomics
vol. 14,
no. 4, November 2022
(pp. 78–121)
Abstract
We consider a two-stage contest, in which only a subset of contestants enters the finale. We explore the optimal policy for disclosing contestants' interim status after the preliminary round, i.e., their interim ranking and elimination decision. The optimum depends on the design objective. We fully characterize the conditions under which disclosure or concealment emerges as the optimum. We further allow the organizer to bias the competition based on finalists' interim rankings, which endogenizes the dynamic structure of the contest. Concealment outperforms in generating total effort, while disclosure prevails when maximizing the expected winner's total effort.Citation
Fu, Qiang, and Zenan Wu. 2022. "Disclosure and Favoritism in Sequential Elimination Contests." American Economic Journal: Microeconomics, 14 (4): 78–121. DOI: 10.1257/mic.20200230Additional Materials
JEL Classification
- C72 Noncooperative Games
- L22 Firm Organization and Market Structure
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