Asymmetric Contests with Conditional Investments
AbstractThis paper studies equilibrium behavior in a class of games that models asymmetric competitions with unconditional and conditional investments. Such competitions include lobbying settings, labor-market tournaments, and R& races, among others. I provide an algorithm that constructs the unique equilibrium in these games and apply it to study competitions in which a fraction of each competitor's investment is sunk and the rest is paid only by the winners. Complete-information all-pay auctions are a special case. (JEL D44, D72, D82)
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by American Economic Association in its journal American Economic Review.
Volume (Year): 100 (2010)
Issue (Month): 5 (December)
Find related papers by JEL classification:
- D44 - Microeconomics - - Market Structure and Pricing - - - Auctions
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
- Arye Hillman & Dov Samet, 1987. "Dissipation of contestable rents by small numbers of contenders," Public Choice, Springer, Springer, vol. 54(1), pages 63-82, January.
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1992.
"Rigging the Lobbying Process: An Application of the All- Pay Auction,"
Papers, Pennsylvania State - Department of Economics
9-92-2, Pennsylvania State - Department of Economics.
- Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1993. "Rigging the Lobbying Process: An Application of the All-Pay Auction," American Economic Review, American Economic Association, American Economic Association, vol. 83(1), pages 289-94, March.
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991. "Rigging The Lobbying Process: An Application Of The All- Pay Auction," Purdue University Economics Working Papers 1002, Purdue University, Department of Economics.
- Ellingsen, Tore, 1991.
"Strategic Buyers and the Social Cost of Monopoly,"
American Economic Review, American Economic Association,
American Economic Association, vol. 81(3), pages 648-57, June.
- Ellingsen, T., 1990. "Strategic Buyers and the Social Cost of Monopoly," Papers, Norwegian School of Economics and Business Administration- 05-90, Norwegian School of Economics and Business Administration-.
- Daniele Condorelli, 2009. "What money can't buy: allocations with priority lists, lotteries and queues," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 1482, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Parreiras, Sérgio O. & Rubinchik, Anna, 2010. "Contests with three or more heterogeneous agents," Games and Economic Behavior, Elsevier, vol. 68(2), pages 703-715, March.
- Lazear, Edward P & Rosen, Sherwin, 1981.
"Rank-Order Tournaments as Optimum Labor Contracts,"
Journal of Political Economy, University of Chicago Press,
University of Chicago Press, vol. 89(5), pages 841-64, October.
- Barut, Yasar & Kovenock, Dan, 1998. "The symmetric multiple prize all-pay auction with complete information," European Journal of Political Economy, Elsevier, vol. 14(4), pages 627-644, November.
- Bos, Olivier & Ranger, Martin, 2013. "All-Pay Auctions with Polynomial Rewards," MPRA Paper 47587, University Library of Munich, Germany.
- JÃ¶nsson, Stefan & Schmutzler, Armin, 2013.
"All-Pay Auctions: Implementation and Optimality,"
CEPR Discussion Papers, C.E.P.R. Discussion Papers
9323, C.E.P.R. Discussion Papers.
- Stefan JÃ¶nsson & Armin Schmutzler, 2013. "All-pay auctions: Implementation and optimality," ECON - Working Papers, Department of Economics - University of Zurich 108, Department of Economics - University of Zurich.
- Theodore L. Turocy & Lucas Rentschler, 2014. "All-pay auctions with interdependent valuations: The highly competitive case," University of East Anglia Applied and Financial Economics Working Paper Series, School of Economics, University of East Anglia, Norwich, UK. 063, School of Economics, University of East Anglia, Norwich, UK..
- Kaplan, Todd R & Zamir, Shmuel, 2014.
"Advances in Auctions,"
54656, University Library of Munich, Germany.
- Todd R. Kaplan & Shmuel Zamir, 2014. "Advances in Auctions," Discussion Paper Series, The Center for the Study of Rationality, Hebrew University, Jerusalem dp662, The Center for the Study of Rationality, Hebrew University, Jerusalem.
- Todd R. Kaplan & Shmuel Zamir, 2014. "Advances in Auctions," Discussion Papers, Exeter University, Department of Economics 1405, Exeter University, Department of Economics.
- David Pérez-Castrillo & David Wettstein, 2014.
CESifo Working Paper Series
4712, CESifo Group Munich.
- Franke, Jörg & Kanzow, Christian & Leininger, Wolfgang & Schwartz, Alexandra, 2013.
"Lottery versus All-Pay Auction Contests: A Revenue Dominance Theorem,"
Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order
79998, Verein für Socialpolitik / German Economic Association.
- Franke, Jörg & Kanzow, Christian & Leininger, Wolfgang & Schwartz, Alexandra, 2014. "Lottery versus all-pay auction contests: A revenue dominance theorem," Games and Economic Behavior, Elsevier, vol. 83(C), pages 116-126.
- JÃ¶rg Franke & Christian Kanzow & Wolfgang Leininger & Alexandra Schwartz, 2012. "Lottery versus All-Pay Auction Contests â€“ A Revenue Dominance Theorem," Ruhr Economic Papers, Rheinisch-WestfÃ¤lisches Institut fÃ¼r Wirtschaftsforschung, Ruhr-UniversitÃ¤t Bochum, UniversitÃ¤t Dortmund, UniversitÃ¤t Duisburg-Essen 0315, Rheinisch-WestfÃ¤lisches Institut fÃ¼r Wirtschaftsforschung, Ruhr-UniversitÃ¤t Bochum, UniversitÃ¤t Dortmund, UniversitÃ¤t Duisburg-Essen.
- Zhiguo He & Gregor Matvos, 2012. "Debt and Creative Destruction: Why Could Subsidizing Corporate Debt be Optimal?," NBER Working Papers 17920, National Bureau of Economic Research, Inc.
- Szech, Nora & Weinschenk, Philipp, 2013. "Rebates in a Bertrand game," Journal of Mathematical Economics, Elsevier, vol. 49(2), pages 124-133.
- Christian Ewerhart, 2014. "Elastic contests and the robustness of the all-pay auctions," ECON - Working Papers, Department of Economics - University of Zurich 155, Department of Economics - University of Zurich.
- Matthias KrÃ¤kel & Frauke Lammers & Nora Szech, 2011.
"Externalities in Recruiting,"
Bonn Econ Discussion Papers, University of Bonn, Germany
bgse02_2011, University of Bonn, Germany.
- Kräkel, Matthias & Szech, Nora & Bieberstein, Frauke von, 2013. "Externalities in Recruiting," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 414, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Ron Siegel, 2014. "Contests with productive effort," International Journal of Game Theory, Springer, Springer, vol. 43(3), pages 515-523, August.
- Julio GonzÃ¡lez-DÃaz & Ron Siegel, 2013. "Matching and price competition: beyond symmetric linear costs," International Journal of Game Theory, Springer, Springer, vol. 42(4), pages 835-844, November.
- Dmitry Orlov, 2014. "Optimal Design of Internal Disclosure," 2014 Meeting Papers, Society for Economic Dynamics 314, Society for Economic Dynamics.
- Bettina Klose & Dan Kovenock J., 2012.
"Extremism Drives Out Moderation,"
CESifo Working Paper Series
3804, CESifo Group Munich.
- Hirata, Daisuke, 2014. "A model of a two-stage all-pay auction," Mathematical Social Sciences, Elsevier, Elsevier, vol. 68(C), pages 5-13.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.