Tigran Melkonyan, Warwick Business School, University of Warwick, Coventry CV47AL, United Kingdom (Tigran.Melkonyan@wbs.ac.uk).
Article first published online: 24 JUL 2013
© 2013 Wiley Periodicals, Inc.
Journal of Public Economic Theory
Volume 15, Issue 6, pages 968–992, December 2013
How to Cite
MELKONYAN, T. (2013), Hybrid Contests. Journal of Public Economic Theory, 15: 968–992. doi: 10.1111/jpet.12052
- Issue published online: 8 OCT 2013
- Article first published online: 24 JUL 2013
- Accepted manuscript online: 21 MAY 2013 10:41AM EST
- Manuscript Accepted: 13 JAN 2012
- Manuscript Received: 25 FEB 2011
This paper examines hybrid contests where participants commit two types of resources to improve their probability of winning the prize. The first type is forfeited ex ante, before the prize is allocated, by winners and losers alike, while the second is committed ex ante by all contenders but expended ex post, after the prize is allocated, and only by the contestant that wins the prize. The model yields a number of interesting results. Among them is the finding that, as the number of contestants increases, the ex ante expenditures of individual contestants decrease while the ex post expenditure increases. Even more interesting, the total of the ex ante and ex post expenditures by the contenders in a hybrid contest may decrease with the number of competitors. The study also finds that there is no rent overdissipation, and compares the total expenditures in the contest and “all-pay” allocation mechanisms.