This paper studies sabotage in a contest with non-identical players. Unlike previous papers, we consider sabotage in an elimination contest and allow contestants to sabotage a potential or future rival. It turns out that for a certain partition of players there is a pure-strategy equilibrium in which only the most able contestant engages in sabotage while less able contestants do not. The most able contestant may therefore prefer a situation where sabotage is allowed to one where sabotage is not allowed. For another partition of players, there is a unique equilibrium in which none of the players invests in sabotage.
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number
CESifo Working Paper No. 1500.
References listed on IDEAS 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.:
Christian Groh & Benny Moldovanu & Aner Sela & Uwe Sunde, 2003.
"Optimal Seedings in Elimination Tournaments,"
Discussion Papers
140, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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