IDEAS home Printed from https://ideas.repec.org/a/oup/restud/v52y1985i2p193-209..html
   My bibliography  Save this article

Perfect Equilibrium in a Model of a Race

Author

Listed:
  • Christopher Harris
  • John Vickers

Abstract

This paper investigates perfect equilibrium in a model of a race in which two players are competing for an indivisible prize. The winner is the first player to reach the finishing line. It is shown that the behaviour of the winner of the race is often exactly as if he were the only player: the rival makes no difference. Even if competition does affect the winner's behaviour, it does so only in the first stage of the race and not thereafter. It is shown how several factors combine to determine which player will win: relative valuations of the prize, discount rates, efficiency at making progress and initial distances from the finishing line. Insofar as the model applies to patent races, it suggests that the potential competition faced by one firm in a patent race (e.g. an incumbent monopolist) may be of little or no consequence.

Suggested Citation

  • Christopher Harris & John Vickers, 1985. "Perfect Equilibrium in a Model of a Race," Review of Economic Studies, Oxford University Press, vol. 52(2), pages 193-209.
  • Handle: RePEc:oup:restud:v:52:y:1985:i:2:p:193-209.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/2297616
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:restud:v:52:y:1985:i:2:p:193-209.. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.