In models of non-deterministic contest, players exert irreversible effort in order to increase their probability of winning a prize. The most prominent functional form of the win probability in the literature is the so-called "logitʺ contest success function. We provide a simple...

We examine the strategic interaction in the market for physician services when the total budget for reimbursement is fixed. We show that this prospective payment system involves - compared to a fee-for-service remuneration system - a severe coordination problem, which potentially leads to the...