  When funding public goods, resources are often allocated via mechanisms that
resemble contests, especially in the case of scientific grants. A common
critique of these contests is that they induce "too much" effort from
participants working on applications. However, this paper emphasizes the
importance of understanding the externalities associated with participation in
these contests before drawing conclusions about the optimal mechanism design.
Survey-based estimates suggest that the social costs of time spent on
scientific grant applications may not be a first-order concern in
non-emergencies. Still, further research is required to better understand how
scientists compete in grant contests.

General Economics;Economics