This paper studies the problem of designing contests for settings where a principal seeks to optimize the quality of the best contribution obtained, and potential contestants only strategize about whether to participate in the contest, as participation incurs some cost. This type of contest can be mapped to various real-life settings (e.g., selection of background actors based on headshots, photography contest). The paper provides a comparative game-theoretic based solution to two variants of the above underlying model: parallel and sequential contest, enabling a characterization of the equilibrium strategies in each. Special emphasis is placed on the case where the contestants are a priori homogeneous which is often the case in contests where ranking is mostly influenced by some probabilistic factors (e.g., luck) or whenever contestants are evaluated subjectively by a referee whose taste cannot be a priori predicted. Here, several (somehow counter-intuitive) properties of the equilibrium are proved, in particular for the sequential contest, leading to a comprehensive characterization of the principal's preference between the two.
This paper studies two suboptimal advice provisioning methods ("advisors") as an alternative to providing optimal advice in repeated advising settings. Providing users with suboptimal advice has been reported to be highly advantageous whenever the optimal advice is non-intuitive, hence might not be accepted by the user. Alas, prior methods that rely on suboptimal advice generation were designed primarily for a single-shot advice provisioning setting, hence their performance in repeated settings is questionable. Our methods, on the other hand, are tailored to the repeated interaction case. Comprehensive evaluation of the proposed methods, involving hundreds of human participants, reveals that both methods meet their primary design goal (either an increased user profit or an increased user satisfaction from the advisor), while performing at least as good with the alternative goal, compared to having people perform with: (a) no advisor at all; (b) an advisor providing the theoretic-optimal advice; and (c) an effective suboptimal-advice-based advisor designed for the non-repeated variant of our experimental framework.
Much of the work on multi-agent contests is focused on determining the equilibrium behavior of contestants. This capability is essential for the principal for choosing the optimal parameters for the contest (e.g. prize amount). As it turns out, many contests exhibit not one, but many possible equilibria, hence precluding contest design optimization and contestants behavior prediction. In this paper we examine a variation of the classic contest that alleviates this problem by having contestants make the decisions sequentially rather than in parallel. We study this model in the setting of a simple contest, wherein contestants only choose whether or not to participate, while their performance level is exogenously set. We show that by switching to the revised mechanism the principal can not only force her most desired pure-strategies based equilibrium to emerge, but also, at times, end up with an equilibrium offering a greater expected profit. Further, we show that in the modified contest the optimal prize can be effectively computed. The theoretical analysis is complemented by comprehensive experiments with people over Amazon Mechanical Turk. Here, we find that the modified mechanism offers great benefit for the principal, both in terms of an increased over-participation in the contest (compared to theoretical expectations) and increased average profit.
One key motivation for using contests in real-life is the substantial evidence reported in empirical contest-design literature for people's tendency to act more competitively in contests than predicted by the Nash Equilibrium. This phenomenon has been traditionally explained by people's eagerness to win and maximize their relative (rather than absolute) payoffs. In this paper we make use of "simple contests," where contestants only need to strategize on whether to participate in the contest or not, as an infrastructure for studying whether indeed more effort is exerted in contests due to competitiveness, or perhaps this can be attributed to other factors that hold also in non-competitive settings. The experimental methodology we use compares contestants' participation decisions in eight contest settings differing in the nature of the contest used, the number of contestants used and the theoretical participation predictions to those obtained (whenever applicable) by subjects facing equivalent non-competitive decision situations in the form of a lottery. We show that indeed people tend to over-participate in contests compared to the theoretical predictions, yet the same phenomenon holds (to a similar extent) also in the equivalent non-competitive settings. Meaning that many of the contests used nowadays as a means for inducing extra human effort, that are often complex to organize and manage, can be replaced by a simpler non-competitive mechanism that uses probabilistic prizes.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.