Suzuki, Toru - In: Games and Economic Behavior 75 (2012) 2, pp. 1009-1013
Agents compete to solve a problem. Each agent simultaneously chooses either a safe method or a risky method to solve the problem. This paper analyzes a prize scheme as an incentive to induce the optimal risk-taking level which maximizes the designerʼs interest. It is shown that whenever the...