We analyze the effects of future liquidity constraints on contestants’ investment in a dynamic contest model. Contestants invest in two consecutive contests to win a prize in each period. The loser of the first-period contest can be liquidity-constrained in the second period due to too little remaining wealth. The winner of the first contest can reinvest the prize in the second contest. We show that future liquidity constraints mainly affect the imbalance of the contest in the future but not today. Surprisingly, larger contest prizes decrease contestants’ future investments and amplify the imbalance of future contests. However, the contest organizer can reduce this imbalance by increasing the share of the prize money in the second contest.

我们在动态竞赛模型中分析了未来流动性约束对参赛者投资的影响。参赛者投资两次连续的比赛，以在每个时期中获得大奖。由于剩余财富太少，第一阶段比赛的失败者在第二阶段可能会受到流动性的限制。第一次比赛的获胜者可以将奖金重新投入第二次比赛。我们表明，未来的流动性约束主要影响未来而不是今天的竞争失衡。令人惊讶的是，较大的竞赛奖减少了参赛者的未来投资，并加剧了未来竞赛的不平衡。但是，竞赛组织者可以通过增加第二场竞赛的奖金份额来减少这种不平衡。