Discussion Paper Details

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Title: Effective Political Contests

Author(s): Todd Kaplan and Aner Sela

Publication Date: April 2008

Keyword(s): All-pay auctions, Contests and Entry costs

Programme Area(s): Industrial Organization

Abstract: We study two-stage political contests with private entry costs. We show that these political contests could be ineffective, namely, the chance of low ability candidates participating in the contest might be higher than the chance of high ability candidates participating in the contest (and winning). However, by imposing a costly requirement (fee) on the winner of the contest, one can guarantee that the contest will be effective.

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Bibliographic Reference

Kaplan, T and Sela, A. 2008. 'Effective Political Contests'. London, Centre for Economic Policy Research.