- A-Z
- Jena Economic Resea...
- Volume 4
- Competitive Problem...
Competitive Problem Solving and the Optimal Prize
Schemes
- Angeblicher Autor(in)
- Erschienen
- 2. Dezember 2010
- Nummer des Discussion-Papers
-
2010-083
- Schlagwort(e)
-
Optimal prize scheme
Problem solving
Risk taking
- Zusammenfsg.
-
Agents compete to solve a problem. Each agent knows own computational capacity as private information and simultaneously chooses either a risky or a safe problem solving method. This paper analyzes the optimal prize schemes from the perspective of the prize designer who wishes to …nd a solution as quick as possible. It is shown that (i) the winner-take-all scheme can induce excessive risk taking and make problem solving slower (ii) prize schemes with milder competitive pressure induce the optimal risk taking and quicker problem solving.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- D82 - Asymmetric and Private Information