Preemptive behavior in sequential-move tournaments with heterogeneous agents
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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Volume (Year): 6 (2005)
Issue (Month): 3 (November)
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