• Competitive Balance When Winning Breeds Winners 

      Clark, Derek John; Nilssen, Tore (Journal article; Tidsskriftartikkel; Peer reviewed, 2020-09-01)
      In contest settings, heterogeneity between contestants generally leads to low effort provision, and many instruments have been suggested to restore competitive balance. We suggest that heterogeneity may evolve depending upon the outcome of previous contests. Restoring competitive balance in this setting is challenging, and we consider the choice faced by a principal who can distribute a prize fund ...
    • Creating balance in dynamic competitions 

      Clark, Derek John; Nilssen, Tore (Journal article; Tidsskriftartikkel; Peer reviewed, 2020-01-02)
      We consider incentives for organizing competitions in multiple rounds, focusing on situations where there is heterogeneity among the contestants ex ante, which discourages effort in a single contest. Heterogeneity evolves across rounds depending upon the outcomes of previous rounds. We present conditions under which balance in such a competition can be created, by determining the number of rounds ...
    • Gaining advantage by winning contests 

      Clark, Derek John; Nilssen, Tore; Sand, Jan Yngve (Journal article; Tidsskriftartikkel; Peer reviewed, 2020-03-20)
      We consider a principal who faces many identical competitors, and who can distribute a prize fund over two consecutive contests. The winner of contest one gains an advantage in contest two where his effort is more productive than all rivals. We identify a tipping point for the productivity parameter, below which it is optimal for an effort-maximizing principal to place the whole prize in the second ...
    • Keep on fighting: The dynamics of head starts in all-pay auctions 

      Clark, Derek J.; Nilssen, Tore (Journal article; Tidsskriftartikkel; Peer reviewed, 2018-05-22)
      We investigate a model of a series of contests in which a contestant's past and present success gives a head start over a rival in the future. How this advantage from winning affects contestants' efforts, whether the laggard gives up or keeps on fighting, and how the head start develops over time, are key issues. We find that the expected effort of the laggard will always be higher than the rival ...