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Players with Fixed Resources in Elimination Tournaments

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  • Alexander Matros

Abstract

We consider two-round elimination tournaments where players have fixed resources instead of cost functions. Two approaches are suggested. If the players have the same resources and a success function is stochastic, then players always spend more resources in the first than in the second round in a symmetric equilibrium. Equal resource allocation between two rounds takes place only in the winner-take-all case. However, if the players have independent private resources and the success function is deterministic, then every player spends at least one third of his resources in the first round. The players spend exactly one third of their resources in the winner-take-all case. Applications for career paths, elections, and sports are discussed

Suggested Citation

  • Alexander Matros, 2004. "Players with Fixed Resources in Elimination Tournaments," 2004 Meeting Papers 616, Society for Economic Dynamics.
    • Handle: RePEc:red:sed004:616
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    References listed on IDEAS

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    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. Benny Moldovanu & Aner Sela, 2008. "The Optimal Allocation of Prizes in Contests," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 615-631, Springer.
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    8. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
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    Cited by:

    1. Konrad, Kai A., 2007. "Strategy in contests: an introduction [Strategie in Turnieren – eine Einführung]," Discussion Papers, Research Unit: Market Processes and Governance SP II 2007-01, WZB Berlin Social Science Center.

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    More about this item

    Keywords

    Tournaments; Fixed Budget;

    JEL classification:

    • D79 - Microeconomics - - Analysis of Collective Decision-Making - - - Other

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