Curated Contests

Abstract

Firms seeking solutions to their innovation problems have attempted to use the contest format to source solutions from a broader network of solvers. However, sourcing quality solutions for complex problems has proven to be challenging as real-world contests end without satisfactory solutions for the seeker. Contestants may simply lack the resources and guidance to tackle complex innovation problems. To leverage the contest mechanism for sourcing solutions to complex problems, we propose a hybrid approach called the Curated Contest - in which firms benefit from competition among contestants but also engage in curation, by sifting and screening intermediate contestant submissions and potentially offering various forms of support for developing proof of concept and validating ideas. However, contest-curation must take into account that screening itself may be imperfect and that there may be information asymmetries between solution seekers and skeptical contestants. In the current paper, we provide guidance to the solution-seeking firm on when and how to organize such curated contests. We find that screening can stimulate additional effort from contestants. Firms can gain solver credibility by fine-tuning the reward size and other support schemes including late-stage compensation and proof of concept cost-sharing. We present a managerial framework to help design a carefully curated contest, which can help firms realize more effort from contestants.