Speaker：Prof. WANG Zhewei(Shandong University)

Time：15:30-17:00 March 30,2017(Thursday)

Site：B129

Abstract：Multi-dimensional contests refer to situations where players compete by exerting efforts in multiple dimension, which is commonplace in the real world. In a two-player two-dimension all-pay contest model, we derive and compare the optimal grand multi-dimensional contest and the optimal separate single-dimensional contests. We find that the former is preferred/indifferent to the latter for the contest designer when her payoff function takes a multiplicative/additive form. Intuitively, when the payoff function takes a multiplicative form, effort level in one dimension has an externality effect to the effectiveness of effort making in another dimension. In a grand two-dimensional contest each player bids efforts in two dimensions cooperatively where the externality effect is taken into consideration.