Collaboration In An Innovation Contest: The Effect Of Prize Division For Symmetrical Solvers

The aim of this research is to explore the question of managing collaboration. Through an adaptation of Tullock’s rent-seeking contest, we explore how variations on prize division between the solvers affect equilibrium effort, and discuss the outcomes with reference to its relevance in practical application. The main findings are: equilibrium effort is not necessarily lower in a collaboration scenario than in a scenario when a solver is working individually; and that the division of the prize significantly varies the optimal effort, especially when competition is introduced between the solvers