Submission Fees in Risk-Taking Contests
Theoretical Economics
2021-09-01 v1 General Economics
Probability
Economics
Abstract
This paper investigates stochastic continuous time contests with a twist: the designer requires that contest participants incur some cost to submit their entries. When the designer wishes to maximize the (expected) performance of the top performer, a strictly positive submission fee is optimal. When the designer wishes to maximize total (expected) performance, either the highest submission fee or the lowest submission fee is optimal.
Cite
@article{arxiv.2108.13506,
title = {Submission Fees in Risk-Taking Contests},
author = {Mark Whitmeyer},
journal= {arXiv preprint arXiv:2108.13506},
year = {2021}
}