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players. We compare tournaments with a second prize equal to either 0%, 50%, or 100% of the first prize. While theory predicts … advantaged in the 100%-treatment and disadvantaged in the 0%-treatment. Also in line with the theory, we identify a strategic …
Persistent link: https://www.econbiz.de/10013293842
This paper examines the strategic effects of case preparation in litigation. Specifically, it shows how the pretrial efforts incurred by one party may alter its adversary's incentives to settle. We build a sequential game with one-sided asymmetric information where the informed party first...
Persistent link: https://www.econbiz.de/10010264386
Usually, groups increase their productivity by the specialization of their group members. In these cases, group output is no longer simply a sum of individual outputs. We analyze contests with group-specific public goods that allow for different degrees of complementarity between group members'...
Persistent link: https://www.econbiz.de/10010270650
This paper provides existence and characterization of the optimal contest success function under the condition that the objective of the contest designer is total effort maximization among n heterogeneous players. Heterogeneity of players makes active participation of a player in equilibrium...
Persistent link: https://www.econbiz.de/10010274382
We consider a sequential game in which one player produces a public good and the other player can influence this decision by making an unconditional transfer. An efficient allocation requires the Lindahl property: the sum of the two (implicit) individual prices has to be equal to the resource...
Persistent link: https://www.econbiz.de/10010274724
This paper examines conflicts in which performance is measured by the players' success or failure in multiple component conflicts, commonly termed 'battlefields'. In multi-battlefield conflicts, behavioral linkages across battlefields depend both on the technologies of conflict within each...
Persistent link: https://www.econbiz.de/10010274746
Many economic and political decisions are the outcome of strategic contests for a given prize. The nature of such contests can be determined by a designer who is driven by political considerations with a specific political culture. The main objective of this study is to analyze the effect of...
Persistent link: https://www.econbiz.de/10010274763
The characteristics of endogenously determined sharing rules and the group-size paradox are studied in a model of group contest with the following features: (i) The prize has mixed private-public good characteristics. (ii) Groups can differ in marginal cost of effort and their membership size....
Persistent link: https://www.econbiz.de/10010274854
We analyze a sequential game between two symmetric countries when firms can invest in a multinational structure that confers tax savings. Governments are able to commit to long-run tax discrimination policies before firms' decisions are made and before statutory capital tax rates are chosen...
Persistent link: https://www.econbiz.de/10010261390
Academic economists today are caught in a Publication Impossibility Theorem System" or PITS. To further their careers, they are required to publish in A-journals, but this is impossible for the vast majority because there are few slots open in such journals. Such academic competition is held to...
Persistent link: https://www.econbiz.de/10010264595