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9 - Contests in Other Environments: Draws, Large Contests, and Entry

from Part III - Applications

Published online by Cambridge University Press:  30 May 2024

Carmen Beviá
Affiliation:
Universidad de Alicante
Luis Corchón
Affiliation:
Universidad Carlos III de Madrid
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Summary

In Chapter 9, we explore extensions to the basic model, focusing on Draws, Large Contests, and Entry. Previous chapters assumed contests had one winner, with all others classified as losers. However, alternative outcomes like draws are possible. Draws occur when contestants have equal points or the outcome is inconclusive, as in certain soccer matches, chess games, or wars without a clear winner. They can also happen when prizes are shared or not awarded, like some Nobel Prizes or R&D contests. The chapter examines these extensions, along with equilibrium existence. We display an estimation of a CSF with draws with data from European soccer leagues which is close to one maximizing aggregate effort. In the section on Large Contests, we study scenarios where each contestant feels insignificant in a mass of contestants, such as in official exams, and address the contest as an individual decision problem. Lastly, we discuss complications when contestants can choose among alternative contests. Here, equilibrium existence is not always guaranteed but can occur in specific instances.

Type
Chapter
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Contests
Theory and Applications
, pp. 133 - 149
Publisher: Cambridge University Press
Print publication year: 2024

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