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Winners' Efforts in Multi-Battle Team Contests


Serena,  Marco
Public Economics, MPI for Tax Law and Public Finance, Max Planck Society;

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Barbieri, S., & Serena, M. (2019). Winners' Efforts in Multi-Battle Team Contests. Working Paper of the Max Planck Institute for Tax Law and Public Finance, No. 2019-03.

Cite as: https://hdl.handle.net/21.11116/0000-000C-BA44-6
Multi-battle team contests are ubiquitous in real-life competitions. All temporal structures of multi-battle team contests yield the same total effort, as demonstrated by Fu, Lu, and Pan (2015, American Economic Review, 105(7): 2120-40)'s remarkable temporal-structure independence. Rather than total effort, we focus on winners' efforts, a natural objective in R&D races, elections, and sports. We show that, among all possible temporal structures, winners' efforts are maximized (minimized) by a fully simultaneous (sequential) contest. Furthermore, while total effort is unaffected by battle ordering (sequence independence), we show that winners' efforts are minimized in a fully sequential contest where battles are ordered from hardest to easiest.