Effective Political Contests
15 Pages Posted: 11 Jun 2008
Date Written: April 2008
Abstract
We study two-stage political contests with private entry costs. We show that these political contests could be ineffective, namely, the chance of low ability candidates participating in the contest might be higher than the chance of high ability candidates participating in the contest (and winning). However, by imposing a costly requirement (fee) on the winner of the contest, one can guarantee that the contest will be effective.
Keywords: All-pay auctions, Contests, Entry costs
JEL Classification: D44, O31, O33
Suggested Citation: Suggested Citation
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