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Multi-battle contests Author info | Abstract | Publisher info | Download info | Related research | Statistics Konrad, Kai A.
Kovenock, Dan
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We study equilibrium in a multistage race in which players compete in a sequence of simultaneous move component contests. Players may win a prize for winning each component contest, as well as a prize for winning the overall race. Each component contest is an all-pay auction with complete information. We characterize the unique equilibrium analytically and demonstrate that it exhibits endogenous uncertainty. Even a large lead by one player does not fully discourage the other player, and each feasible state is reached with positive probability in equilibrium (pervasiveness). Total effort may exceed the value of the prize by a factor that is proportional to the maximum number of stages. Important applications are to war, sports, and R&D contests and the results have empirical counterparts there.
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Paper provided by Purdue University, Department of Economics in its series Purdue University Economics Working Papers with number
1187.
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Length: 33 pages
Date of creation: Mar 2006Date of revision:
Handle: RePEc:pur:prukra:1187Contact details of provider: Postal: Krannert Building, West Lafayette, IN 47907 Web page: http://www.krannert.purdue.edu/programs/phd More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Max Hapner).
Keywords: all-pay auction ; contest ; race ; conflict ; multi-stage ; R&D ; endogenous uncertainty ; preemption ; discouragement ; Other versions of this item:
Article Paper Kai A. Konrad & Dan Kovenock, 2006.
"Multi-battle contests ,"
Discussion Papers
122, 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.
[Downloadable!] Konrad, Kai A & Kovenock, Dan, 2006.
"Multi-Battle Contests ,"
CEPR Discussion Papers
5645, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Find related papers by JEL classification: D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances
This paper has been announced in the following NEP Reports :
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.: Fudenberg, Drew & Gilbert, Richard & Stiglitz, Joseph & Tirole, Jean, 1983.
"Preemption, leapfrogging and competition in patent races ,"
European Economic Review ,
Elsevier, vol. 22(1), pages 3-31, June.
[Downloadable!] (restricted)
Kai A. Konrad & Dan Kovenock, 2005.
"Equilibrium and Efficiency in the Tug-of-War ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
[Downloadable!]
Other versions:
Konrad, Kai A & Kovenock, Dan, 2005.
"Equilibrium and Efficiency in the Tug-of-War ,"
CEPR Discussion Papers
5205, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted) Kai A. Konrad & Dan Kovenock, 2006.
"Equilibrium and Efficiency in the Tug-of-War ,"
Discussion Papers
121, 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.
[Downloadable!] Konrad, Kai A. & Kovenock, Dan, 2005.
"Equilibrium and Efficiency in the Tug-Of-War ,"
Purdue University Economics Working Papers
1177, Purdue University, Department of Economics.
[Downloadable!] Klumpp, Tilman & Polborn, Mattias K., 2006.
"Primaries and the New Hampshire Effect ,"
Journal of Public Economics ,
Elsevier, vol. 90(6-7), pages 1073-1114, August.
[Downloadable!] (restricted)
Baye, M.R. & Kovenock, D. & De Vries, C., 1992.
"The All-Pay Auction with Complete Information ,"
Papers
8-92-1, Pennsylvania State - Department of Economics.
Other versions:
Baye, Michael R. & Kovenock, Dan & Vries, Casper de, 1995.
"The All-pay Auction with Complete Information ,"
CESifo Working Paper Series
CESifo Working Paper No. , CESifo Group Munich.
Kovenock, D. & de Vries, C.G., 1995.
"The All-Pay Auction with Complete Information ,"
UFAE and IAE Working Papers
311.95, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991.
"The All-Pay Auction With Complete Information ,"
Purdue University Economics Working Papers
1007, Purdue University, Department of Economics.
Baye, M.R. & Kovenock, D. & De Varies, C.G., 1990.
"The All-Pay Auction With Complete Information ,"
Papers
9051, Tilburg - Center for Economic Research.
Dan Kovenock & Michael R. Baye & Casper G. de Vries, 1996.
"The all-pay auction with complete information (*) ,"
Economic Theory ,
Springer, vol. 8(2), pages 291-305.
Budd, Christopher & Harris, Christopher & Vickers, John, 1993.
"A Model of the Evolution of Duopoly: Does the Asymmetry between Firms Tend to Increase or Decrease? ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 60(3), pages 543-73, July.
[Downloadable!] (restricted)
Stefan Szymanski, 2003.
"The Economic Design of Sporting Contests ,"
Journal of Economic Literature ,
American Economic Association, vol. 41(4), pages 1137-1187, December.
Garfinkel, M.R. & Skaperdas, S., 2000.
"Conflict without Misperceptions or Incomplete Information: how the Future Matters ,"
Papers
99-00-11, California Irvine - School of Social Sciences.
Other versions: Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1999.
" The Incidence of Overdissipation in Rent-Seeking Contests ,"
Public Choice ,
Springer, vol. 99(3-4), pages 439-54, June.
[Downloadable!] (restricted)
Other versions: Harris, Christopher & Vickers, John, 1987.
"Racing with Uncertainty ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 54(1), pages 1-21, January.
[Downloadable!] (restricted)
Arye L. Hillman & John G. Riley, 1987.
"Politically Contestable Rents and Transfers ,"
UCLA Economics Working Papers
452, UCLA Department of Economics.
[Downloadable!]
Baye, M.R. & Kovenock, D. & De Vries, C.G., 1992.
"Rigging the Lobbying Process: An Application of the All- Pay Auction ,"
Papers
9-92-2, Pennsylvania State - Department of Economics.
Other versions:
Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991.
"Rigging The Lobbying Process: An Application Of The All- Pay Auction ,"
Purdue University Economics Working Papers
1002, Purdue University, Department of Economics.
Baye, Michael R & Kovenock, Dan & de Vries, Casper G, 1993.
"Rigging the Lobbying Process: An Application of the All-Pay Auction ,"
American Economic Review ,
American Economic Association, vol. 83(1), pages 289-94, March.
[Downloadable!] (restricted) Thomas Hoehn & Stefan Szymanski, 1999.
"The Americanization of European football ,"
Economic Policy ,
CEPR, CES, MSH, vol. 14(28), pages 203-240, 04.
[Downloadable!] (restricted)
Fearon, James D., 1995.
"Rationalist explanations for war ,"
International Organization ,
Cambridge University Press, vol. 49(03), pages 379-414, June.
[Downloadable!]
Other versions: Harris, Christopher & Vickers, John, 1985.
"Perfect Equilibrium in a Model of a Race ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 52(2), pages 193-209, April.
[Downloadable!] (restricted)
Full
references Cited by : (explanations , 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.)
Dmitry Ryvkin, 2009.
"Fatigue in dynamic tournaments ,"
Working Papers
wp2009_06_03, Department of Economics, Florida State University.
[Downloadable!]
Konrad, Kai A & Kovenock, Dan, 2006.
"Multi-Stage Contests with Stochastic Ability ,"
CEPR Discussion Papers
5844, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
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