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Two-Stage Elimination Contests with Endogenous Continuation Values: An Analytical Solution

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  • Stracke, Rudi

    ()

  • Kerschbamer, Rudolf

    ()

  • Sunde, Uwe

    ()

Abstract

This paper analyzes a two-stage pairwise elimination contest with heterogeneous agents. It derives analytical expressions for equilibrium efforts in a setting where the two simultaneous stage-1 interactions are linked through endogenously determined continuation values.

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File URL: http://www1.vwa.unisg.ch/RePEc/usg/econwp/EWP-1220.pdf
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Bibliographic Info

Paper provided by University of St. Gallen, School of Economics and Political Science in its series Economics Working Paper Series with number 1220.

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Length: 11 pages
Date of creation: Aug 2012
Date of revision:
Handle: RePEc:usg:econwp:2012:20

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Keywords: Multi-Stage Elimination Contest; Heterogeneity; Endogenous Continuation Value;

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  1. Rosen, Sherwin, 1986. "Prizes and Incentives in Elimination Tournaments," American Economic Review, American Economic Association, vol. 76(4), pages 701-15, September.
  2. Rick Harbaugh & Tilman Klumpp, 2005. "Early Round Upsets and Championship Blowouts," Economic Inquiry, Western Economic Association International, vol. 43(2), pages 316-329, April.
  3. Groh, Christian & Moldovanu, Benny & Sela, Aner & Sunde, Uwe, 2012. "Optimal seedings in elimination tournaments," Munich Reprints in Economics 20441, University of Munich, Department of Economics.
  4. Richard Cornes & Roger Hartley, 2005. "Asymmetric contests with general technologies," Economic Theory, Springer, vol. 26(4), pages 923-946, November.
  5. Jennifer Brown & Dylan B. Minor, 2011. "Selecting the Best? Spillover and Shadows in Elimination Tournaments," NBER Working Papers 17639, National Bureau of Economic Research, Inc.
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