Prize sharing rules in collective contests: when do social norms matter

Gupta, Dhritiman (2021) Prize sharing rules in collective contests: when do social norms matter. Review of Economic Design, 27 (1). pp. 221-224. ISSN 14344742

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Abstract

We consider collective contests with group-specific minimum shares, which we call group-specific “norms” of competitiveness. The minimum shares bound the incentive schemes available to a group. We fully characterize how group sizes interact with such norms. We show that the smaller group is generally “aggressive,” adopting the norm sharing rule, which helps generate maximal intra-group competition. On the other hand, the larger group is often “docile,” exceeding the norm sharing rule, which softens intra-group competition. We also examine how group welfare relates to group sizes and the norm sharing rules. We identify when the larger group fares worse in the contest, a phenomenon known as Group Size Paradox in the literature.

Item Type: Article
Keywords: Rent Seeking | Collective Action | Prize Sharing Rules
Subjects: Social Sciences and humanities > Social Sciences > Social Sciences (General)
JGU School/Centre: Jindal School of Government and Public Policy
Depositing User: Amees Mohammad
Date Deposited: 04 Feb 2022 09:27
Last Modified: 24 Feb 2023 10:19
Official URL: https://doi.org/10.1007/s10058-021-00273-4
Additional Information: Correction: In equation 2, Ski should have read ski. In the sentence beginning “It is to be noted that in this sharing” in this article, K should have read k and I should have read i In the section lemma 2, the beginning text should start with “for” The original article has been corrected.
URI: https://pure.jgu.edu.in/id/eprint/1017

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