Arbeitspapier
The role of budget constraints in sequential elimination tournaments
Motivated by the EU concept of Pre-Commercial Procurement and the massivepresence of SMEs in the European economy, we study how budget constraints affect R&D effort in sequential elimination tournaments. We show that introducingbudget constraints leads to a non-monotonicity in unconstrained contestants' effort.Furthermore, we show that if the budget asymmetry is not too large, unconstrainedcontestants exert higher effort than when faced with unconstrained contestants only.
- Language
-
Englisch
- Bibliographic citation
-
Series: DIW Discussion Papers ; No. 1777
- Classification
-
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
National Government Expenditures and Related Policies: Procurement
- Subject
-
Pre-Commercial Procurement
Contests
Budget constraints
- Event
-
Geistige Schöpfung
- (who)
-
Arve, Malin
Chiappinelli, Olga
- Event
-
Veröffentlichung
- (who)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (where)
-
Berlin
- (when)
-
2018
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Arve, Malin
- Chiappinelli, Olga
- Deutsches Institut für Wirtschaftsforschung (DIW)
Time of origin
- 2018