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Preemptive behavior in sequential-move tournaments with heterogeneous agents

  • P.-J. Jost

    ()

  • M. Kräkel

    ()

Rank-order tournaments are usually modeled simultaneously. However, real tournaments are often sequential. We show that agents' strategic behavior in sequential-move tournaments significantly differ from the one in simultaneous-move tournaments: In a sequential-move tournament with heterogeneous agents, the first acting agent may choose a preemptively high effort so that the following agent gives up. The principal is able to prevent preemptive behavior in equilibrium by choosing a sufficiently small spread between winner and loser prize. Copyright Springer-Verlag Berlin/Heidelberg 2005

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File URL: http://hdl.handle.net/10.1007/s10101-004-0088-4
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Article provided by Springer in its journal Economics of Governance.

Volume (Year): 6 (2005)
Issue (Month): 3 (November)
Pages: 245-252

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Handle: RePEc:spr:ecogov:v:6:y:2005:i:3:p:245-252
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