How much would you spend to win the prize?
A probabilistic contest rewards relative effort while making every contestant bear their own cost.
Inside this model
The prize is worth 100. Your win chance is your effort divided by the sum of both efforts. Your expected net payoff is 100×win chance−your effort; a seeded play samples one winner and subtracts your effort whether you win or lose.
Out in the world
A practical use
Two teams spending resources on a single prize may dissipate much of its value in competition.
A useful lens. Not a universal law.
- The rival effort is fixed and known; real contests have uncertain strategies and varied effort effectiveness.
Associated thinkers
Further reading
Explore the original research or the teaching reference behind this experiment.
Gordon Tullock — Efficient Rent Seeking ↗