Technological Determinants of the Group-Size Paradox
39 Pages Posted: 28 Feb 2011 Last revised: 23 May 2011
There are 2 versions of this paper
Technological Determinants of the Group-Size Paradox
Technological Determinants of the Group-Size Paradox
Date Written: May 20, 2011
Abstract
The present paper analyzes the occurrence of the group-size paradox in situations in which groups compete for rents, allowing for degrees of rivalness of the rent among group members. We provide two intuitive criteria which for groups with homogenous valuations of the rent determine whether there are advantages or disadvantages for larger groups: group-size biasedness and returns to scale. For groups with heterogenous valuations, the complementarity of group members' efforts is shown to play a role as a further factor.
Keywords: Contests, Public Goods, Group-Size Paradox
JEL Classification: D74, H41
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Prize Sharing in Collective Contests
By Shmuel Nitzan and Kaoru Ueda
-
Cost Sharing in Collective Contests
By Shmuel Nitzan and Kaoru Ueda
-
No Right to Fight: The Modern Implications of Japan's Pacifist Postwar Constitution