Extractive contest design

Abstract

We consider contest success functions (CSFs) that extract contestants' prize values. In the common-value case, there exists a CSF extractive in any equilibrium. In the observable-private-value case, there exists a CSF extractive in some equilibrium; there exists a CSF extractive in any equilibrium if and only if the number of contestants is greater than or equal to three or the values are homogeneous. In the unobservable-private-value case, there exists no CSF extractive in some equilibrium. When extractive CSFs exist, we explicitly present one of them.