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The set of pure-strategy equilibria in max–min two-group contests with a private good prize

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  • Gilli, Mario
  • Sorrentino, Andrea

Abstract

We characterize the set of pure-strategy equilibria in a deterministic group contest with the weakest-link impact function and a private good prize, complementing the results obtained by Lee (2012) and Chowdhury et al. (2016). We consider a two-stage two-group model, where in the first stage the agents simultaneously choose the sharing rule, while in the second stage they choose efforts. We find that there are continua of subgame perfect equilibria, which means that in equilibrium players’ behavior is indeterminate. By additional restrictions on the effort levels of each class of effort equilibria, we are able to computationally characterize the set of subgame perfect Nash equilibria in pure strategies.

Suggested Citation

  • Gilli, Mario & Sorrentino, Andrea, 2025. "The set of pure-strategy equilibria in max–min two-group contests with a private good prize," Mathematical Social Sciences, Elsevier, vol. 138(C).
  • Handle: RePEc:eee:matsoc:v:138:y:2025:i:c:s0165489625000861
    DOI: 10.1016/j.mathsocsci.2025.102471
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    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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