Asymmetric All-Pay Contests with Heterogeneous
This paper studies complete-information, all-pay contests with asymmetric players competing for multiple heterogeneous prizes. In these contests, each player chooses a performance level or score. The first prize is awarded to the player with the highest score,the second,less valuable prize to the player with the second highest score, etc. Players are asymmetric in that they incur di¤erent costs of score. The players are assumed to have ordered marginal costs, and the prize sequence is assumed to be either quadratic or geometric. I show that each such contest has a unique Nash equilibrium and exhibit an algorithm that constructs the equilibrium. I then apply the main result to study: (a) the issue of tracking students in schools, (b) the incentive e¤ects of superstars,and (c)the optimality of winner-take-all contests.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +61 3 8344 5355
Fax: +61 3 8344 6899
Web page: http://www.economics.unimelb.edu.au
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Baye, M.R. & Kovenock, D. & De Vries, C.G., 1991.
"The All-Pay Auction With Complete Information,"
Purdue University Economics Working Papers
1007, Purdue University, Department of Economics.
- Baye, M.R. & Kovenock, D. & De Varies, C.G., 1990. "The All-Pay Auction With Complete Information," Papers 9051, Tilburg - Center for Economic Research.
- Baye, M. & Kovenock, D. & de Vries, C., 1990. "The All-Pay Auction with Complete Information," Discussion Paper 1990-51, Tilburg University, Center for Economic Research.
- Baye, M.R. & Kovenock, D. & De Vries, C., 1992. "The All-Pay Auction with Complete Information," Papers 8-92-1, Pennsylvania State - Department of Economics.
- Kovenock, D. & de Vries, C.G., 1995. "The All-Pay Auction with Complete Information," UFAE and IAE Working Papers 311.95, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Jeremy Bulow & Jonathan Levin, 2006.
"Matching and Price Competition,"
American Economic Review,
American Economic Association, vol. 96(3), pages 652-668, June.
- Jeremy Bulow & Jonathan Levin, 2005. "Matching and Price Competition," NBER Working Papers 11506, National Bureau of Economic Research, Inc.
- Jonathan Levin & Jeremy Bulow, 2004. "Matching and Price Competition," Econometric Society 2004 North American Winter Meetings 350, Econometric Society.
- Bulow, Jeremy I. & Levin, Jonathan, 2003. "Matching and Price Competition," Research Papers 1818, Stanford University, Graduate School of Business.
- Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603.
- Lizzeri, Alessandro & Persico, Nicola, 2000. "Uniqueness and Existence of Equilibrium in Auctions with a Reserve Price," Games and Economic Behavior, Elsevier, vol. 30(1), pages 83-114, January.
When requesting a correction, please mention this item's handle: RePEc:mlb:wpaper:1151. 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: (Aminata Doumbia)
If references are entirely missing, you can add them using this form.