?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F33626%2F&rft.title=Optimality+of+Winner-Take-All+Contests%3A+The+Role+of+Attitudes+toward+Risk&rft.creator=Treich%2C+Nicolas&rft.creator=Liu%2C+Linqun&rft.subject=B-+ECONOMIE+ET+FINANCE&rft.description=It+has+been+established+in+the+literature+that%2C+under+the+assumption+of+risk-neutral+contestants%2C+it+is+usually+optimal+for+an+effort-maximizing+contest+organizer+with+a+fixed+prize+budget+to+award+everything+to+a+single+winner.+This+paper+studies+the+role+of+risk+attitudes+%E2%80%93+risk+aversion+and+prudence+in+particular+%E2%80%93+in+determining+the+optimality+of+winner-take-all+contests.+We+compare+the+typical+single-winner+lottery+contest+with+two+alternative+ways+of+spreading+the+rewards+to+more+players%3A+through+holding+multiple+prize-giving+lottery+competitions+or+through+guaranteeing+a+bottom+prize+for+the+losers.+In+the+first+comparison%2C+we+found+that+the+multiple-competition+contest+is+as+effective+as+the+winner-take-all+contest+when+the+contestants+are+risk+neutral%2C+but+the+former+induces+more+effort+than+the+latter+when+the+contestants+are+both+risk+averse+and+prudent.+In+the+second+comparison%2C+we+found+that+the+contest+with+a+bottom+prize+is+always+dominated+by+the+winner-take-all+contest+when+the+contestants+are+risk+neutral%2C+but+the+former+could+have+an+advantage+over+the+latter+when+the+contestants+are+both+risk+averse+and+prudent%2C+and+it+is+more+likely+so+as+the+contestants+become+more+prudent.&rft.publisher=TSE+Working+Paper&rft.date=2019-12&rft.type=Monograph&rft.type=NonPeerReviewed&rft.format=text&rft.language=en&rft.identifier=https%3A%2F%2Fpublications.ut-capitole.fr%2Fid%2Feprint%2F33626%2F1%2Fwp_tse_1060.pdf&rft.identifier=++Treich%2C+Nicolas+%3Chttps%3A%2F%2Fwww.idref.fr%2F176599940%3E+and+Liu%2C+Linqun++(2019)+Optimality+of+Winner-Take-All+Contests%3A+The+Role+of+Attitudes+toward+Risk.++TSE+Working+Paper%2C+n.+19-1060%2C+Toulouse+++++&rft.relation=https%3A%2F%2Fwww.tse-fr.eu%2Fsites%2Fdefault%2Ffiles%2FTSE%2Fdocuments%2Fdoc%2Fwp%2F2019%2Fwp_tse_1060.pdf&rft.language=en