Do you want to be promoted? Know that

 Almost every person in the world would like to be promoted and rewarded for his achievements. It doesn’t matter if the promotion is at work or in other aspects of life. In many cases, this form of promotion depends not only on the person's efforts but also on his rival efforts, resulting in a promotion contest.

In this form of contest, to win, we have to know a few insights that this post will shed light on. It is straightforward that the more effort exerted in this form of contest, the higher the probability of winning the contest.  However, in those forms of contest, there is additional effort that everyone should be familiar with. This additional effort is the sabotaging effort.  This effort has a curtailed effect on the outcome of this contest. Sabotaging efforts aim to reduce rival contestants' probability of winning and are common in promotion contests. 

The main question is how to be prepared to be sabotaged or how to minimize the effect of it. We will try to answer.

Here are some examples of different types of promotion contests:

1. Social Media Contests

Photo Contest

·         Example: A travel agency asks participants to post their best vacation photos on Instagram with a specific hashtag. The top three photos with the most likes win a free trip or travel gear.

Caption Contest

·         Example: A fashion brand posts a picture of a new product and asks followers to create the best caption. The winner gets a gift card or the featured product.

2. Sweepstakes and Giveaways

Simple Entry Sweepstakes

·         Example: An electronics company offers a chance to win a new smartphone. Participants enter by filling out a form on the company’s website.

Refer-a-Friend Sweepstakes

·         Example: A fitness app encourages users to refer friends. Each referral is an entry to win a free annual membership or workout equipment.

3. Skill-Based Contests

Recipe Contest

·         Example: A food company asks participants to submit original recipes using their products. The best recipe, judged by a panel of chefs, wins a cash prize and gets featured in the company’s marketing materials.

Talent Contest

·         Example: A music streaming service holds a contest for the best cover song. Participants upload their videos, and the public votes for their favorite. The winner receives a recording contract or studio time.

4. Instant Win Contests

Scratch and Win

·         Example: A fast-food chain includes scratch cards with each meal purchase. Customers can instantly win free food items, discounts, or a grand prize trip.

Spin to Win

·         Example: An online retailer features a virtual spin wheel on their website. Visitors can spin the wheel for a chance to win discounts, free shipping, or gift cards.

5. User-Generated Content Contests

Video Contest

·         Example: A sportswear brand asks customers to create videos showcasing their workout routines while wearing the brand’s clothing. The best video, based on creativity and engagement, wins a complete sportswear kit.

Storytelling Contest

·         Example: A book publisher invites readers to share their personal stories related to a theme inspired by their latest release. The most compelling story wins a collection of books and a feature on the publisher’s blog.

6. Community-Based Contests

Charity Challenge

·         Example: A supermarket chain launches a community challenge where local schools compete to collect the most non-perishable food items for donation. The winning school gets a cash prize for their programs.

Neighborhood Improvement Contest

·         Example: A home improvement store encourages neighborhoods to submit their plans for a community project. The best plan, judged by a panel and community votes, receives funding and supplies to complete the project.

7. Product Launch Contests

First to Find

·         Example: A toy company hides limited-edition toys in select stores. Clues are given on social media, and the first customers to find and purchase the toys win additional prizes.

Name the Product

·         Example: A beverage company asks customers to suggest names for a new drink flavor. The chosen name wins a year’s supply of the product and public recognition.

Tips for Running Successful Promotion Contests

1.      Define Objectives: Clearly define what you aim to achieve with the contest (e.g., brand awareness, sales boost, customer engagement).

2.      Know Your Audience: Tailor the contest to your target demographic to maximize participation and engagement.

3.      Set Clear Rules: Ensure that the rules are straightforward, fair, and transparent to avoid any confusion or disputes.

4.      Promote the Contest: Use various channels like social media, email marketing, and your website to spread the word about the contest.

5.      Offer Attractive Prizes: Make sure the prizes are appealing and relevant to your audience to encourage participation.

6.      Engage Participants: Keep participants engaged throughout the contest period with regular updates and interactions.

7.      Follow-up: Announce winners publicly, share their stories, and thank all participants for maintaining a positive brand image.

To understand and predict proper behavior in this situation, we will use understanding from game theory when contest theory is a sub-theme (there are great theoretical books in this field (link1), (link2)).

First, let us understand who the victim of sabotage is in the promotion contest. Many studies have shown that the more talented contestants, the stronger ones, are the subject of the most sabotage. The consensus of this fact is huge since the most talented contestants might drop down from the contests. We see it a lot in politics as victims of negative campaigns (for more details (see link)).

How sabotage could be prevented. This could be done mainly by the contest organizer. There are no easy solutions, but one which is straightforward is the regulation and sabotaging monitoring and reduced benefits from sabotaging. An additional solution is increasing the number of contestants, which also helps reduce sabotaging. Another dissenting solution is to keep the contestant's information secret.

But what can a person who participates in this contest do? The most efficient solution (which also should be done by the contest organizer) is to keep as much secret information regarding your ability as possible. If the contest has more than one stage, then in the first stage, act as a “weak” contestant and show less of your talent.

The important thing that should be considered by all parties in the contest is to realize that sabotaging behavior is common and should be prevented.

The pictures in this post were taken from Unsplash.

 

 

To contribute or not to contribute? This is the question

 The term "free rider" refers to an individual or entity that benefits from resources, goods, services, or other benefits others provide without paying for them or contributing to the cost. The concept is often discussed in economics and political science, particularly in relation to public goods and services, where it can create challenges in ensuring equitable and efficient provision.

For example, in the context of public goods such as clean air, national defense, or public parks, free riders benefit from these services without contributing to their maintenance or creation. This can lead to underfunding and depletion of these resources, as individuals may have little incentive to pay for something they can use for free.

Free rider problems can also occur in organizations or group projects, where some members may not contribute their fair share of effort or resources, relying instead on the efforts of others. Addressing free rider problems typically involves implementing mechanisms to encourage or require contributions, such as taxation, regulation, or incentive structures.

The first to mention the free rider problem was David Hume in 1740, who was involved in his two neighbors' meadow draining problem. Since then, much research has been done in the field. When game theory is one of the natural frameworks for this case.

In game theory, the free rider problem is often analyzed within the context of public goods games and collective action problems. These scenarios illustrate how individuals may have incentives to rely on others to contribute to a common resource while they abstain from contributing themselves, ultimately leading to suboptimal outcomes for the group.

Public Goods Game

A classic example is the public goods game. In this game:

1. Participants: Multiple players are involved.
2. Contributions: Each player can choose to contribute to a common pool.
3. Benefit: The total contribution is multiplied by a factor greater than one and then equally divided among all players, regardless of their individual contributions.

Example

• Suppose there are five players.
• Each player can contribute $100 to a common pool.
• The total contribution is multiplied by 2 and then equally divided among the players.

If all players contribute:

• Total contribution = 5 × $100 = $500
• Multiplied total = $50 × 2 = $1000
• Each player receives $100 / 5 = $200

However, if one player decides to free ride and contribute nothing while others contribute:

• Total contribution = 4 × $100 = $400
• Multiplied total = $40 × 2 = $800
• Each player receives $80 / 5 = $160

The free rider receives $160 without contributing, whereas contributors get less than they would if everyone had contributed.

Addressing the Free Rider Problem

Game theory also explores mechanisms to mitigate the free rider problem, such as:

1. Incentives: Offering rewards for contributions or penalties for non-contributions.
2. Repetition: Repeated interactions can build trust and encourage cooperation (iterated games).
3. Communication: Allowing players to discuss strategies can foster mutual agreements.
4. Regulation: Imposing rules or taxes to ensure contributions.

Real-World Applications

1. Environmental Issues: Nations may free-ride on others' efforts to reduce carbon emissions, leading to international agreements and treaties to enforce contributions.
2. Taxation: Citizens may avoid paying taxes and benefit from public services funded by others, which is why tax enforcement mechanisms are in place.
3. Workplaces: Team members may not contribute equally to a project, so managers implement performance reviews and incentives.

Understanding the free rider problem through game theory helps in designing systems and policies that promote cooperation and fair contribution, leading to better collective outcomes.

Another real-life example of the free rider problem can be seen in the context of public broadcasting services, such as PBS (Public Broadcasting Service) in the United States.

Public Broadcasting Service (PBS)

The Situation

1. Service Provided: PBS provides educational television programming, news, cultural content, and children's shows that are available to the general public.
2. Funding: The funding for PBS comes from a combination of government grants, corporate sponsorships, and donations from viewers.

The Free Rider Problem

• Accessibility: PBS is freely accessible to anyone with a television or internet connection, regardless of whether they contribute financially.
• Voluntary Donations: PBS relies heavily on voluntary contributions from viewers during pledge drives and fundraising campaigns.

Free Riders

• Non-Contributors: Many viewers enjoy PBS programming without ever donating or contributing to its funding.
• Impact: The free rider problem can lead to underfunding of PBS, potentially limiting the quality and quantity of programming available.

Mitigation Strategies

PBS and similar organizations use several strategies to mitigate the free rider problem:

1. Pledge Drives: Regular fundraising campaigns encourage viewers to contribute by highlighting the importance of public support.
2. Member Benefits: Offering special perks to donors, such as exclusive content, event invitations, or merchandise, incentivizes contributions.
3. Public Awareness: Raising awareness about the need for public support and the impact of donations helps educate viewers on the importance of their contributions.
4. Government Support: Partial funding from government grants ensures a baseline level of support, though it doesn't entirely eliminate reliance on voluntary donations.

Importance of Addressing the Free Rider Problem

• Sustainability: Addressing the free rider problem is crucial for the sustainability of public services that rely on voluntary contributions.
• Equitable Contribution: Encouraging broader participation in funding helps distribute the cost more equitably among beneficiaries.
• Quality and Continuity: Ensuring adequate funding helps maintain service quality and continuity.

The free rider problem in public broadcasting exemplifies the challenges faced by many public goods and services, where the benefits are widely available, but the burden of funding often falls on a relatively small group of contributors.

One of the possible solutions regarding the free riders problem is providing information regarding resources or goods that need public contribution. For example, in the case of blood donation, providing real-time information on donations with a prediction of seasonal need may improve the efficiency of blood donations.

Unfortunately, each and every one of us might have a positive incentive to try to free-ride on the efforts of others. The main purpose of this post is to shed light on this issue and be vigilant about it.

The pictures in this post were taken from Unsplash.