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Repeated Contests with Draws

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  • Franke, Jörg
  • Metzger, Lars P.

Abstract

We consider a simple contest game with draws where with some probability none of the contestants is selected as winner. If such an outcome occurs, then the contest is repeated in the next period unless either one of the contestants wins the prize or until a final last period is reached. Allowing for finite as well as infinite time horizons and different variations in the timing of effort decisions, the theoretical analysis of this model reveals that the dynamic contest structure has profound implications for intertemporal effort substitution and contest revenue.

Suggested Citation

  • Franke, Jörg & Metzger, Lars P., 2023. "Repeated Contests with Draws," Ruhr Economic Papers 1016, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:1016
    DOI: 10.4419/96973182
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Contest theory; repeated contest; dynamic contest; contest with draws;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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