In a framework of contest design, we study capacity-constrained competition and analyze its resulting revenue shares. Our analysis contrasts the near-symmetric case, where rms have similar supply sizes, and the extremely asymmetric case, where one large rm dominates the market. In particular, we show that while in the near-symmetric case simple contests provide near optimal equilibrium revenues for all sellers, in the asymmetric case a large rm can design more complicated contests that result in disproportionally low equilibrium revenues for her smaller opponents.
2018-09-19 14:00 ~ 15:00
Ron Lavi, Technion — Israel Institute of Technology
Room 602, School of Information Management & Engineering, Shanghai University of Finance & Economics