Auctioning Entry into Tournaments
Year: 1999
Type: preprint
Abstract: A research tournament model with heterogeneous contestants is presented. For a large class of contests the optimal number of contestants is two. This insight makes designing the tournament easier and highlights the importance of selecting highly qualified contestants. While customary uniform-price and discriminatory-price auctions are intuitively appealing mechanisms for solving this adverse selection problem, in practice they generally will not be efficient mechanisms for selecting contestants. Instead, we propose an alternative auction format that is equally simple to implement and efficiently selects the most qualified contestants to compete, regardless of the form of contestant heterogeneity.
Source: SSRN Electronic Journal
Authors: Richard L. Fullerton, R. Preston McAfee
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W3121969412