Chasing Contests
Fuente:
arXiv
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| Main Authors: | , |
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| Format: | Preprint |
| Published: |
2024
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| Subjects: | |
| Online Access: | |
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| _version_ | 1866909448229879808 |
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| author | Chen, Zhuo Liu, Yun |
| author_facet | Chen, Zhuo Liu, Yun |
| contents | This paper proposes a dynamic research contest, namely chasing contest, in which two asymmetric contestants exert costly effort to accomplish two breakthroughs. The contestants are asymmetric in that one of them is present-biased and has already achieved one breakthrough (the leader), whereas the other is time-consistent and needs to achieve two breakthroughs to win (the chaser). The principal can choose between two disclosure policies: immediately announcing the chaser's first breakthrough (public chasing contest) or announcing only the final result (hidden chasing contest). We characterize the unique x-start and y-stop equilibrium under both disclosure policies, in which the leader starts working from an instant x to the end while the chaser stops exerting effort by the instant y. In addition, the chaser will never stop earlier in the hidden chasing contest, whereas a late deadline extends the leader's effort in the public contest. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2404_02756 |
| institution | arXiv |
| publishDate | 2024 |
| record_format | arxiv |
| spellingShingle | Chasing Contests Chen, Zhuo Liu, Yun Theoretical Economics This paper proposes a dynamic research contest, namely chasing contest, in which two asymmetric contestants exert costly effort to accomplish two breakthroughs. The contestants are asymmetric in that one of them is present-biased and has already achieved one breakthrough (the leader), whereas the other is time-consistent and needs to achieve two breakthroughs to win (the chaser). The principal can choose between two disclosure policies: immediately announcing the chaser's first breakthrough (public chasing contest) or announcing only the final result (hidden chasing contest). We characterize the unique x-start and y-stop equilibrium under both disclosure policies, in which the leader starts working from an instant x to the end while the chaser stops exerting effort by the instant y. In addition, the chaser will never stop earlier in the hidden chasing contest, whereas a late deadline extends the leader's effort in the public contest. |
| title | Chasing Contests |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2404.02756 |