Sequential Contests Revisited
15 Pages Posted: 22 Mar 2017 Last revised: 21 Sep 2018
Date Written: June 19, 2017
Abstract
Morgan (Public Choice, 116:1-18, 2003) finds that the aggregate effort is greater in sequential than in simultaneous lottery contests. We show that Morgan's result is incorrect due to a slip in a proof, and that the aggregate effort is greater in sequential contests only if contestants are sufficiently homogeneous. Additionally, we discuss the robustness of the corrected result to different specifications of the contest success function, and we partially restore Morgan's case for sequential contests by showing that these contests are more desirable when maximizing only the effort of the winner, rather than maximizing the aggregate effort.
Keywords: Contest Design, Sequential Contests, Simultaneous Contests
JEL Classification: C72, D72
Suggested Citation: Suggested Citation