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Contests with a constrained choice set of effort

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  • Klunover, Doron
  • Morgan, John

Abstract

We consider a symmetric two-player contest, in which the choice set of effort is constrained. We apply a fundamental property of the payoff function to show that, under standard assumptions, there exists a unique Nash equilibrium in pure strategies. It is shown that all equilibria are near the unconstrained equilibrium. Perhaps surprisingly, this is not the case when players have different prize evaluations.

Suggested Citation

  • Klunover, Doron & Morgan, John, 2020. "Contests with a constrained choice set of effort," Economics Letters, Elsevier, vol. 196(C).
    • Handle: RePEc:eee:ecolet:v:196:y:2020:i:c:s0165176520303402
    DOI: 10.1016/j.econlet.2020.109559
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    References listed on IDEAS

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    More about this item

    Keywords

    Contests; Constrained choice set of effort;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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