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contestants that consists out of those m contestants with the lowest δ values that
satisfy the following inequality:

(m 1)δP ^ δp for all i M and for P {ET, AA} .        (24)

jM

From the definition of the share function in Eq. (22) the equilibrium effort level
of contestant
i can be calculated as e*(P) = z*∕αp = si(Z*)Z*P. Inserting the
expression for Z
* leads to Eq. (10).31

B References

Bernardo, Antonio E., Eric Talley, and Ivo Welch (2000): “A Theory of
Legal Presumptions,”
Journal of Law, Economics and Organization, 16, 1-49.

Calsamiglia, Catarina (2004): “Decentralizing Equality of Opportunity,”
Working Paper.

Clark, Derek J., and Christian Riis (1998): “Contest Success Functions: An
Extension,”
Economic Theory, 11, 201-204.

Corch5n, LuiS C. (2000): “On the Allocative Effects of Rent Seeking,” Journal of
Public Economic Theory
, 2(4), 483-491.

Cornes, Richard, and Roger Hartley (2005): “Asymmetric Contests with
General Technologies,”
Economic Theory, 26, 923-946.

Fryer, Roland G., and Glenn C. Loury (2005a): “Affirmative Action and Its
Mythology,”
Journal of Economic Perspectives, 19.

-------  (2005b): “Affirmative Action in Winner-Take-All-Markets,” Journal of
Economic Inequality
, 3, 263-280.

Fu, Quiang (2006): “A Theory of Affirmative Action in College Admissions,”
Economic Inquiry, 44, 420-428.

Holzer, Harry, and David Neumark (2000): “Assessing Affirmative Action,”
Journal of Economic Literature, 3(3), 483-568.

Kranich, Laurence (1994): “Equal Division, Efficiency, and the Sovereign Supply
of Labor,”
American Economic Review, 84, 178-189.

31 Stein (2002) derives a similar expression in a rent-seeking framework where the contestants are
heterogeneous with respect to valuations instead of marginal costs.

25



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