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A Model Of rivalries with endogenous prize and strength

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  • Luo, Zijun
  • Xie, Xin

Abstract

This paper extends Beviá and Corchón (2013) to a model with both endogenous contestable prize and endogenous relative strength. Such a setting is ideal for the study of intra-organizational rivalries, commonly observed in family, sports, promotion, and duopoly. We find that when the game starts with asymmetric players, the weaker player exerts more effort than the stronger player. As a result, the weaker player partially overcomes the disadvantage of being weak. In this setting, neither domino nor avalanche effect exists.

Suggested Citation

  • Luo, Zijun & Xie, Xin, 2018. "A Model Of rivalries with endogenous prize and strength," Journal of Economic Behavior & Organization, Elsevier, vol. 152(C), pages 215-223.
    • Handle: RePEc:eee:jeborg:v:152:y:2018:i:c:p:215-223
    DOI: 10.1016/j.jebo.2018.06.013
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    Cited by:

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    2. Clark, Derek J. & Nilssen, Tore, 2020. "Creating balance in dynamic competitions," International Journal of Industrial Organization, Elsevier, vol. 69(C).

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    More about this item

    Keywords

    Contest; Endogenous prize; Endogenous strength; Domino effect; Avalanche effect;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

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