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level of resources across a set of contests. In the traditional formulation of the Colonel Blotto game, the players …' resources are use it or lose it" in the sense that any resources which are not allocated to one of the contests are forfeited … find that if the level of asymmetry between the players' budgets is below a threshold, then the unique set of equilibrium …
Persistent link: https://www.econbiz.de/10010264422
Unlike standard auctions, we show that competitive procurement may optimally limit competition or use inefficient … auction to guard against firms bidding low to win the contract and then cutting back on effort. While competition helps reduce …
Persistent link: https://www.econbiz.de/10013249652
We report results from the first experimental study of round-robin tournaments. In our experiment, we investigate how the prize structure affects the intensity, fair-ness, and dynamic behavior in sequential round-robin tournaments with three players. We compare tournaments with a second prize...
Persistent link: https://www.econbiz.de/10013293842
I characterize the optimal accuracy level r of an unbiased Tullock contest between two players with heterogeneous prize valuations. The designer maximizes the winning probability of the strong player or the winner’s expected valuation by choosing a contest with an all-pay auction equilibrium...
Persistent link: https://www.econbiz.de/10013298366
Overbidding in second-price auctions (SPAs) has been shown to be persistent and associated with cognitive ability. We study experimentally to what extent cross-game learning can reduce overbidding in SPAs, taking into account cognitive skills. Employing an order-balanced design, we use...
Persistent link: https://www.econbiz.de/10013314693
This paper studies R&D investment decisions of a firm facing the threat of new technology entry and subject to …
Persistent link: https://www.econbiz.de/10010261128
zero effort) and not accepting (and exerting her optimal effort). In some cases, the competition between players and the …
Persistent link: https://www.econbiz.de/10012841589
If firms compete in all-pay auctions with complete information, silent shareholdings introduce asymmetric externalities into the all-pay auction framework. If the strongest firm owns a large share in the second strongest firm, this may make the strongest firm abstain from bidding. As a...
Persistent link: https://www.econbiz.de/10010261198
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 political culture and of valuation asymmetry on discrimination between the …
Persistent link: https://www.econbiz.de/10010274763
We analyze equilibria of two-player contests where players have intention-based preferences. We find that players …
Persistent link: https://www.econbiz.de/10010291500