Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/86271 
Year of Publication: 
2006
Series/Report no.: 
Tinbergen Institute Discussion Paper No. 06-013/1
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
I present a model in which individuals compete for a prize by choosing to apply or not. Abilities are private information and in attempt to select the best candidate, the committee compares applicants with an imperfect technology. The choice of application cost, size of the prize and use of information technology are being characterized. In equilibrium, the number of applicants is stochastic and may overload the committee. I show that in spite of overload, the optimal cost (size of the prize) is decreasing (increasing) in market size. Furthermore I show when having a perfect information technology is not optimal.
Subjects: 
asymmetric information
beauty contest design
award competition
information overload
JEL: 
D82
Document Type: 
Working Paper

Files in This Item:
File
Size
248.58 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.