Edited by Roger D. Congleton and Arye L. Hillman
This chapter compares effort with contest-success functions of the Tullock logit-lottery type and the all-pay auction. We describe the circumstances in which combinations of the parameters in the general contest give rise to greater effort. Our presentation encompasses in principle two types of contests. In rent-seeking contests, the social objective is to minimize effort because effort is used unproductively. In the contest-design literature, the objective of the designer of the contest can be to maximize effort because effort is privately beneficial to the contest designer, as when ‘effort’ takes the form of a monetary bribe. The bribes then become rents to be contested.
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