We make use of a new and detailed database on FDI approvals since the early 1990s to address two major issues related to FDI and regional development in India in the post-reform period. First, we analyze the location choices of foreign investors. The evidence indicates that the concentration of...

I show that the effect of heterogeneity on contest investments depends on the structure of the competition, which implies that heterogeneity matters for optimal contest design. This insight helps to explain empirical evidence on the comparison of different contest structures.

This paper compares static one-stage and dynamic two-stage contests with heterogeneous participants. I find that aggregate effort provision (AEP) is strictly higher in the dynamic than in the static format in any interior equilibrium with heterogeneous contestants. Since AEP is identical in both...

I show that the effect of heterogeneity on contest investments depends on the structure of the competition, which implies that heterogeneity matters for optimal contest design. This insight helps to explain empirical evidence on the comparison of different contest structures.