The Ponds Dilemma

Arbeitspapier

Is it better to be a big fish in a small pond or a small fish in a big pond? To find out, we study self-selection into contests among a large population of heterogeneous agents. Our simple and highly tractable model generates many testable and sometimes surprising predictions. For example: 1) Entry into the big pond–in terms of show-up fees, number or value of prizes–is non-monotonic in ability; 2) Entry into the more meritocratic (i.e., discriminatory) pond is likewise non-monotonic, exhibiting two interior extrema and disproportionately attracting contestants of very low ability; 3) Changes in reward structures can produce unexpected selection effects. For instance, offering higher show-up fees may lower entry, while raising the value of prizes or making a contest more meritocratic may lower the average ability of entrants.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CESifo Working Paper ; No. 5539

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Auctions

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Morgan, John ; Sisak, Dana ; Vardy, Felix
• Ereignis: Veröffentlichung
• (wer): Center for Economic Studies and ifo Institute (CESifo)
• (wo): Munich
• (wann): 2015

Weitere Informationen

• Handle: http://hdl.handle.net/10419/123181
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ