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Calculate Fair Prize Values for Four Prize Winners.

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    Question Calculate Fair Prize Values for Four Prize Winners.

    Seems simple, but I'm having trouble determining this.

    I'm trying to run a scenario analysis on the prize $ winnings for four winners, depending on the number of participants.

    Each participant buys in for $35, but the thing is that the 4th place winner must always win back the $35 they used to participate, while the other three prize winners win more $ depending on their placement.

    So essentially I need help coming up with a formula that calculates fair winnings for the 1st, 2nd, and 3rd place prize winners, and each of those must obviously be higher than $35 while also being higher than the subsequent winner; the combination of all the prize values for the four tiers must equal the total pot (# of participants x $35).

    I've attached a simple excel spreadsheet that may better explain what I need help with.

    Thanks!

    Update: Figured this out. No need for a reply.
    Attached Files Attached Files
    Last edited by jk2391; 09-02-2021 at 10:09 AM.

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    Re: Calculate Fair Prize Values for Four Prize Winners.

    Please describe your solution for others seeking to solve a similar problem. Thanks.
    Jeff
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    Re: Calculate Fair Prize Values for Four Prize Winners.

    Total price to divide for nr 1-3

    Buy in Price x(# of Participants -1)

    Nr 1 50%
    Nr 2 30%
    Nr 3 20%
    Attached Files Attached Files
    Willem
    English is not my native language sorry for errors
    Please correct me if I'm completely wrong

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    Thumbs up Re: Calculate Fair Prize Values for Four Prize Winners.

    Sure thing.

    My answer is very similar to Popipipo's approach.

    I basically realized that since 4th place always needs to be $35, then the "real pot" for positions 1st to 3rd, is just the total pot (# of participants x $35) - $35, to deduct the $ amount for the 4th winner.

    Then it's a matter of choosing the percent allocations for positions 1st to 3rd so that 1st place winnings is higher than 2nd place, and so on.

    In my attached solved file, I chose 42% for 1st, 32% for 2nd, and 26% for 3rd; these percentages must equal 100% when added, and in this case, the prize tiers do meet my criteria.
    Attached Files Attached Files

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