This paper introduces contest efficiency as an alternative to rent dis
sipation when measuring efficiency in a contest with asymmetric valuat
ions. Contest efficiency is defined as the expected proportion of the
maximum obtainable benefit captured by the contest, and differs from r
ent dissipation because it values the expected winner of the contest.
Therefore, rent dissipation and contest efficiency may suggest contrad
ictory conclusions when agents have asymmetric valuations. This result
is illustrated when comparing alternative equilibria in contests with
asymmetric reimbursement and when analyzing the comparative static ef
fect of a change in the relative benefit of two agents in a Cournot-Na
sh contest.