American Economic Review Vol. 77 No. 5 1987
Strategic Behavior in Contests
Abstract
This paper considers the effect of precommitment in contests where the rivals expend effort to win a prize. With two asymmetric players, it is found that the favorite will commit effort at a higher level than that in a Nash equilibrium without commitment, and the underdog at a lower level. With many players, the absence of an odds-on favorite among rivals is sufficient to ensure overcommitment by any one player. Applications to sports, oligopoly, and rent and rent seeking are discussed.
- Volume
- 77
- Issue
- 5
- Pages
- 891-898
- Sources
- bibtex:phds-export.bib