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Best-of-two contests with psychological effects

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  • Alex Krumer

Abstract

We study a best-of-two contest with two homogeneous players (teams). The winner is the player who wins in both stages. In the case of one victory for each team, a draw determines the identity of the winner. Each team has a value of winning the contest as well as a value of winning a single game. A team’s value of winning a game at its home field is higher than its value of winning a game away from home. We show that if winning in the first stage provides a psychological advantage in the second stage, each team would prefer to play the second stage at its home field. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Alex Krumer, 2013. "Best-of-two contests with psychological effects," Theory and Decision, Springer, vol. 75(1), pages 85-100, July.
    • Handle: RePEc:kap:theord:v:75:y:2013:i:1:p:85-100
    DOI: 10.1007/s11238-012-9313-8
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    References listed on IDEAS

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    More about this item

    Keywords

    Winner-take-all contests; All-pay contests; Best-of-two contests; D44; O31; O32;
    All these keywords.

    JEL classification:

    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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