|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/58339
|
| | |
| Title: | | Differential prize taxation and structural discrimination in contests  |
| Authors: | | Mealem, Yosef Nitzan, Shmuel |
| Issue Date: | | 2012 |
| Series/Report no.: | | CESifo working paper: Public Choice 3831 |
| Abstract: | | This paper evaluates differential prize taxation and structural discrimination as a means of increasing efforts in the most widely studied contests. We establish that a designer who maximizes efforts subject to a balanced-budget constraint prefers dual discrimination, namely, change of the contestants' prize valuations as well as bias of the impact of their efforts. Optimal twofold discrimination is often superior to any single mode of discrimination under any lottery. Surprisingly, in the general N-player contest game, under the prototypical simple lottery, it can yield the maximal possible efforts: the highest valuation of the contested prize. If a single mode of discrimination is allowed, then differential taxation is superior to structural discrimination. |
| Subjects: | | contest design balanced-budget-constraint differential prize taxation structural discrimination dual polarized discrimination contest success function lottery |
| JEL: | | D70 D72 D74 D78 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/58339
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|