Optimal sequential contests

02/13/2018

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by   Toomas Hinnosaar, et al.

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I study sequential contests where the efforts of earlier players may be disclosed to later players by nature or by design. The model has a range of applications, including rent seeking, R&D, oligopoly, public goods provision, and tragedy of the commons. I show that information about other players' efforts increases the total effort. Thus, the total effort is maximized with full transparency and minimized with no transparency. I also study the advantages of moving earlier and the limits of large contests.