Eliciting performance: deterministic versus proportional prizes

Abstract

Two standard schemes for awarding a prize have been examined in the literature. The prize is awarded (πD) deterministically: to the contestant with the highest output; (πP ) probabilistically: to all contestants, with probabilities proportional to their outputs. Our main result is that if there is suffi cient diversity in contestants’skills, and not too… (More)
DOI: 10.1007/s00182-015-0503-9

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