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Sequential Lottery Contests with Multiple Participants

Author

Listed:
  • Nava Kahana
  • Doron Klunover

Abstract

The literature on aggregative games, which has been applied in the study of contests, has focused on simultaneous games. We apply aggregative games techniques in a novel fashion in the analysis of sequential lottery contests with n players. It is shown that: (1) there exists a unique subgame perfect equilibrium in pure strategies, and (2) unlike in the case of a small contest, aggregate expenditure in a large contest is lower than in the corresponding simultaneous contest.

Suggested Citation

  • Nava Kahana & Doron Klunover, 2017. "Sequential Lottery Contests with Multiple Participants," Working Papers tax-mpg-rps-2017-02, Max Planck Institute for Tax Law and Public Finance.
  • Handle: RePEc:mpi:wpaper:tax-mpg-rps-2017-02
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    File URL: http://www.tax.mpg.de/RePEc/mpi/wpaper/TAX-MPG-RPS-2017-02.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Aggregative games; Sequential Contests; Subgame Perfect Equilibrium;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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