Contests with size effects alternative interpretations.docVIP

Allocation of Prizes in Contests with Size Effects * August, 2010 Sanghack Leea and Shi-Young Leeb a: Corresponding author: School of Economics, Kookmin University, Seoul 136-702, South Korea. Tel.: +82 2 910 4546; fax: +82 2 910 4519; E-mail: slee@kookmin.ac.kr b: Division of Business Economics, Chung Ang University, Ansung, South Korea Abstract We examine top-down prize allocation in contests in which the number of contenders affects prizes and costs. There are two groups of contenders. The government allocates a fixed prize among the tw