We show that in a contest with a single prize, the expected effort made by the kth highest valuation participant bounds the sum of the expected efforts made by all of the participants with valuations less than the kth highest valuations. We also show that in the limit case of a contest with m prizes, the expected effort made by the kth highest valuation participant when the bidders are risk-neutral is greater than the expected effort in the risk-averse case.
- All-pay auction
- Risk aversion
ASJC Scopus subject areas
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics