Self-Allocation in Contests
CESifo, Munich, 2017
CESifo Working Paper No. 6636
![](https://cesifo.org/DocImg/cesifo1_wp6636.jpg?c=1689237056)
We consider contestants who must choose exactly one contest, out of several, to participate in. We show that when the contest technology is of a certain type, or when the number of contestants is large, a self-allocation equilibrium, i.e., one where no contestant would wish to change his choice of contest, results in the allocation of players to contests that maximizes aggregate equilibrium effort. For a class of oligopoly models that are equivalent to contests, this implies output maximization.
Public Choice
Industrial Organisation