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Symmetric two-stage contests with budget constraints

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  • William Stein
  • Amnon Rapoport

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Abstract

The impact of a budget constraint on individual expenditures is examined in two models of two-stage contests with homogenous and risk-neutral players competing to win a single, indivisible, commonly valued rent. The set of players is partitioned into equally sized groups. In the first model, one contestant from each group survives to compete on the second stage against the other survivors. In the second model, one group survives the first stage and its members compete against each other on the second stage. We derive and discuss the symmetric subgame perfect equilibrium solution for each model. Copyright Springer Science + Business Media, Inc. 2005

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 124 (2005)
Issue (Month): 3 (September)
Pages: 309-328

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Handle: RePEc:kap:pubcho:v:124:y:2005:i:3:p:309-328

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Web page: http://www.springerlink.com/link.asp?id=100332

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  8. Che, Yeon-Koo & Gale, Ian, 1996. "Expected revenue of all-pay auctions and first-price sealed-bid auctions with budget constraints," Economics Letters, Elsevier, vol. 50(3), pages 373-379, March.
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  10. Amegashie, J Atsu, 2000. " Some Results on Rent-Seeking Contests with Shortlisting," Public Choice, Springer, vol. 105(3-4), pages 245-53, December.
  11. Clark, Derek J & Riis, Christian, 1996. " A Multi-winner Nested Rent-Seeking Contest," Public Choice, Springer, vol. 87(1-2), pages 177-84, April.
  12. Kyung Hwan Baik & Shogren, Jason F., 1995. "Contests with spying," European Journal of Political Economy, Elsevier, vol. 11(3), pages 441-451, September.
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  15. Amegashie, J Atsu, 1999. " The Design of Rent-Seeking Competitions: Committees, Preliminary and Final Contests," Public Choice, Springer, vol. 99(1-2), pages 63-76, April.
  16. Katz, Eliakim & Tokatlidu, Julia, 1996. "Group competition for rents," European Journal of Political Economy, Elsevier, vol. 12(4), pages 599-607, December.
  17. William E. Stein & Amnon Rapoport, 2004. "Asymmetric Two-Stage Group Rent-Seeking: Comparison of Two Contest Structures," Public Choice, Springer, vol. 118(1_2), pages 151-167, 01.
  18. Baik, Kyung Hwan & Lee, Sanghack, 2000. " Two-Stage Rent-Seeking Contests with Carryovers," Public Choice, Springer, vol. 103(3-4), pages 285-96, June.
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Citations

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Cited by:
  1. Johannes M√ľnster & Klaas Staal, 2012. "How organizational structure can reduce rent-seeking," Public Choice, Springer, vol. 150(3), pages 579-594, March.
  2. Kai Konrad, 2012. "Information alliances in contests with budget limits," Public Choice, Springer, vol. 151(3), pages 679-693, June.
  3. J. Atsu Amegashie, 2005. "Asymmetry And Collusion In Infinitely Repeated Contests," Working Papers 0509, University of Guelph, Department of Economics and Finance.
  4. Martin Grossmann, 2011. "Endogenous Liquidity Constraints in a Dynamic Contest," Working Papers 0148, University of Zurich, Institute for Strategy and Business Economics (ISU).
  5. Martin Grossmann & Helmut Dietl, 2012. "Asymmetric contests with liquidity constraints," Public Choice, Springer, vol. 150(3), pages 691-713, March.
  6. Philip Brookins & Dmitry Ryvkin, 2014. "An experimental study of bidding in contests of incomplete information," Experimental Economics, Springer, vol. 17(2), pages 245-261, June.
  7. Cary Deck & Erik O. Kimbrough, 2014. "Single- and Double-Elimination All-Pay Tournaments," Working Papers 14-10, Chapman University, Economic Science Institute.
  8. J. Atsu Amegashie, 2005. "Signaling In A Dynamic Contest With Boundedly Rational Players," Working Papers 0510, University of Guelph, Department of Economics and Finance.
  9. Chiappinelli, Olga, 2014. "An elimination contest with non-sunk bids," MPRA Paper 56140, University Library of Munich, Germany.
  10. J. Atsu Amegashie, 2005. "Information Transmission In Elimination Contests," Working Papers 0511, University of Guelph, Department of Economics and Finance.

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