Abstract: |
Individuals who compete in a contest-like situation (for example, in sports,
in promotion tournaments, or in an appointment contest) may have an incentive
to illegally utilize resources in order to improve their relative positions.
We analyze such doping within a tournament game between two heterogeneous
players. Three major e.ects are identified which determine a player’s doping
decision — a cost e.ect, a likelihood e.ect and a windfall-profit e.ect.
Moreover, we discuss whether the favorite or the underdog is more likely to be
doped, the impact of doping on overall performance, the influence of increased
heterogeneity on doping, the welfare implications of doping, and possible
prevention of doping. |